Buy Larsen & Toubro, target price Rs 1203: Yes Securities

Yes Securities has given a buy rating to Larsen & Toubro with a target price of Rs 1203. The share price moved up by 1.24 per cent from its previous close of Rs 924.65. The stock’s last traded price is Rs 936.10.

Larsen & Toubro Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 131403.62 Crore) operating in Construction sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 21259.97 Crore, down 51.95 % from last quarter Sales of Rs 44245.28 Crore and down 28.26 % from last year same quarter Sales of Rs 29635.95 Crore. The Company reported net profit after tax of Rs 645.07 Crore in latest quarter.

Investment Rationale
As guided by L&T’s mgmt., the company has continued its order inflow traction majorly from Water, Heavy Engineering, Power T&D & Transportation infra through market share gain in difficult times by leveraging its strong balance sheet. Hence, there is a potential for L&T to surprise on the upside on order inflows.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 18.5 per cent, DIIs 36 per cent and public and others 45.5 per cent.