INSUBCONTINENT EXCLUSIVE:
Edelweiss Financial Services has a buy call on Larsen Toubro with a target price of Rs 2,050.
The current market price of Larsen Toubro is
Rs 1,311.40.
Time period given by the brokerage is one year when Larsen Toubro price can reach the defined target
While working capital jumped QoQ to 20.0 per cent from 19.5 per cent, given higher mobilisation, it is unlikely to see major spike given
has walked the talk over the past few quarters, preferring cash flow/profitability over growth, reflected in improving balance sheet and
Commentary on strong Rs 5.3tn order pipeline and sustainable infra execution lends comfort to FY19 revenue/order inflow growth guidance of
12-15 per cent/10-12 per cent
We believe, risk (if any) is only on the upside given tailwinds from the services sector and broadening infra, which is complementing core
fruits over the medium to long term
However, volatility in the domestic market (key growth driver) will be key monitorable, especially as we approach election period
We perceive reasonable scope for improved market share with fewer EPC balance sheets capable of handling growth opportunities, making a case
for potential re-rating for LT
