L&T Shares Rise Most In Four Months As Analysts Remain Bullish After Q3 Results
Shares of Larsen & Toubro Ltd. gained the most since Sep. 23, 2019 as most analysts maintained their stance on the stock after the company’s December quarter results.
L&T’s third-quarter operating profit missed estimates as order execution remained muted amid state elections and a slowing economy. Still, the infrastrucutre major maintained the order inflow guidance at 10-12 percent for the year and revenue growth guidance at 12-15 percent.
Here is what brokerages have to say on L&T’s Q3 results:
- Maintain ‘Buy’; Hike target price to Rs 1,575 from Rs 1,559.
- Q3 results reflect concern on near-term slowdown from slowing government spending.
- Order book growth in infra segment was positive, though sustenance in FY21 is the key.
- L&T remains well-placed to benefit from the continued infra spends in India.
- Maintain ‘Buy’ with target price of Rs 1,950.
- Short-term disruptions mar performance; sanguine prospects.
- Focus on cost, cash and diversification paying off.
- Maintain L&T as industrials top idea despite the Q3 earnings miss.
- Maintain ‘Buy’ with target price of Rs 1,715.
- Third-quarter core revenue weakens on execution headwinds.
- Order inflows remain robust; stable working capital levels lead to strong cash generation.
- Improvement in core Ebitda margin a key positive.
- Maintain ‘Overweight’; Cut target price to Rs 1,556 from Rs 1,753.
- Q3 was below expectations but expect a stronger Q4.
- Execution and liquidity-related challenges in some states affected revenue growth.
- Execution challenges are receding, cash flows should seasonally improve in Q4.
- Domestic prospect list is strong and E&A deal is likely to close shortly.
- Maintain ‘Buy’ with target price of Rs 1,600.
- Q3 performance reflective of resilience of the business model.
- Despite Q3 print, management maintained revenue and order inflow guidance.
- Domestic awarding outlook reasonable in the light of L&T's ask.