Sharekhan is bullish on Larsen and Toubro has recommended buy rating on the stock with a target price of Rs 1250 in its research report dated July 23, 2020.
Sharekhan's research report on Larsen and Toubro
L&T’s Q1FY2021 performance remained resilient in the given conditions with inline revenue, marginally lower operating profit margin (OPM) with estimates, and slip in earnings due to higher interest cost and depreciation. Management has refrained from providing any revenue or order inflow guidance as it is too early to quantify the same and highlighted that the situation is expected to improve in the latter part of FY2021. Order book remains strong and diversified. International order book provides cushion despite lower new order prospects from the Middle East.
Outlook
We maintain our Buy rating on Larsen and Toubro (L&T) with an unchanged PT of Rs. 1,250, considering undemanding valuation and healthy fundamentals to ride the current uncertainties.
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