Buy Larsen & Toubro, target price Rs 2281: LKP Securities

Posted on November 2, 2022Comments Off on Buy Larsen & Toubro, target price Rs 2281: LKP Securities
has buy call on Larsen & Toubro with a target price of Rs 2281. The current market price of Larsen & Toubro is Rs 2024.85.

Larsen & Toubro Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 284464.62 Crore) operating in Construction sector.

Larsen & Toubro Ltd. key Products/Revenue Segments include Income From Construction Work, Income from Manufacturing and Trading Activities, Other Services, Other Operating Revenue, Property Development, Service (Engineering), Commission and Lease Rentals for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 43501.14 Crore, up 19.02 % from last quarter Total Income of Rs 36547.92 Crore and up 23.22 % from last year same quarter Total Income of Rs 35305.04 Crore. Company reported net profit after tax of Rs 2819.20 Crore in latest quarter.

Investment Rationale
Given record OB with strong order pipeline and revival in private capex along with improving health of Hyderbad Metro provides healthy outlook ahead. The brokerage has tweaked estimates given better performance in first half and subsidiary valuation recalibaration. It maintains BUY with a revised SoTP based PT of ?2281.It believes, risk-reward is favorable for L&T given reasonable valuation. Further, L&T’s ‘Lakshya 2026 Plan’ is focusing on scaling up new business opportunities which are now in the incubation phase and are expected to bring significant benefits in future.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 21.09 per cent, DIIs 34.62 per cent.

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