Time period given by analyst is one year when Larsen & Toubro Ltd. price can reach defined target.
Larsen & Toubro Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 254839.72 Crore) operating in Construction sector.
Larsen & Toubro Ltd. key Products/Revenue Segments include Income From Construction Work, Income from Manufacturing and Trading Activities, Other Operating Revenue, Other Services, Commission, Service (Engineering), Lease Rentals and Property Development for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 35305.04 Crore, up 17.75 % from last quarter Total Income of Rs 29982.70 Crore and up 11.75 % from last year same quarter Total Income of Rs 31593.77 Crore. Company reported net profit after tax of Rs 2231.33 Crore in latest quarter.
Investment Rationale
The brokerage expects 23% CAGR in consolidated EPS over FY22-24 with E&C business EPS growing at 17% CAGR over this period (E&C EPS: Rs57.6/Rs67.5 in FY23E/FY24E). L&T’s stock has risen 19% (by Rs283) since Jun-21, which has been completely driven by steep rise in stock prices of its listed IT subsidiaries. E&C business valuations at 12.4x/10.5x FY23/FY24E remain compelling, especially in light of a broader re-rating of cyclical stocks. The brokerage believes L&T has a strong potential to rerate from current levels and maintains BUY rating on the stock, with a revised SOTP-based PT of Rs2,200.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 22.86 per cent, DIIs 33.11 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
