L&T Shares Jump Most In A Month As Analysts Remain Upbeat After Q2 Results

Shares of Larsen & Toubro Ltd. jumped the most in a month as analysts remained upbeat about the company’s performance in the quarter ended September.

L&T's net profit rose 13 percent over the last year to Rs 2,528 crore during the period, according to the company’s exchange filing.

Though order execution for most infrastructure firms remained muted due to a slowdown in public spending, L&T maintained its order inflow guidance at 10-12 percent. The company also maintained revenue guidance at 12-15 percent for the ongoing financial year.

A few analysts also reiterated that L&T remains their best bet among infrastructure companies.

Here’s what brokerages have to say about L&T’s Q2 Results 2019-20

Macquarie

• Maintains ‘Outperform’ with a target price of Rs 1,936 apiece.
• L&T results in line on core metrics.
• Sees several levers for a positive margin surprise.
• Remains preferred stock to hide amid current market volatility.

UBS

• Maintains ‘Sell’ with a target price of Rs 1,401 apiece.
• Broadly in line; domestic environment needs to improve.
• Core engineering and construction revenues marginally lower; margins improve.
• Domestic infra ordering needs to pick up.

Edelweiss

• Maintains ‘Buy’ but cuts target price to Rs 1,950 from Rs 2,000.
• Working capital deteriorated amid tight liquidity.
• Growth in core E&C and infra reflect its stable execution.
• Reiterates L&T as top industrial pick.

HSBC

• Order booking and earnings give confidence on meeting guidance.
• Minor setbacks in the form of slower execution of some government projects.
• Increased working capital are not worrisome yet.