Brokerage firms are of the view that the results are a mixed bag, but the stock is a good proxy to play the domestic growth story.
Morgan Stanley and CLSA maintained their rating on L&T while Nomura slashed target price after the Engineering & infrastructure major reported a 21.2 percent growth in June quarter consolidated profit at Rs 1,473 crore year-on-year.
Profit in the corresponding quarter last fiscal was at Rs 1,129 crore. Profit from continuing operations increased 20.5 percent YoY to Rs 1,361 crore.
Larsen & Toubro in its BSE filing said its consolidated revenue was at Rs 29,636 crore from continuing operations, growing 10 percent year-on-year on good execution progress.
Brokerage firms are of the view that the results are a mixed bag, but the stock is a good proxy to play the domestic growth story.
Nomura maintained its buy call on L&T but slashed its target price to Rs 1,725 from Rs 1,745 earlier.
Growth guidance has been retained as prospects remain robust, which is a good sign. On the other hand, the core margin still remains flattish, but Nomura expects a revival in H2FY20.
The global investment bank slashed earnings per share (EPS) estimates by 7-9 percent.
The company retained its full-year order inflow growth guidance at 10-12 percent and sales growth forecast at 12-15 percent. The company won new orders worth Rs 38,700 crores at the group level during the quarter ended June 2019 registering a growth of 11 percent, which included international orders of Rs 9,005 crore.
CLSA maintained its buy rating on L&T with a target of Rs 1,730 as inflows came as a surprise in a tough macro environment.
Although the results were a mixed bag, the company surprised on new orders, but on the other hand, execution slowed. Weak infrastructure margin is transient in nature, feel CLSA.
A positive surprise in the quarter gone by came from large order wins in power, infra and hydrocarbon. L&T is a good proxy for domestic capex. It has a credible strategy to improve both growth and return on equity (ROE).
Morgan Stanley maintained its overweight call on L&T with a target price of Rs 1,786. The infrastructure major reported decent numbers in a challenging quarter which is a positive sign.
The order book, as well as the balance sh eet, remain strong. The stock has corrected about 13 percent in the last three weeks, providing a good opportunity to buy, Morgan Stanley said.
MORE WILL UPDATE SOON!!
0 comments:
Post a Comment