Sharekhan Picks Large Cap Engineering Behemoth For Investment, Target Price Rs 2390

Sharekhan is bullish on Larsen & Toubro Ltd stock and assigned buy rating with a target price of Rs 2390 apiece. The analyst expects double digit return if you choose the buy Larsen & Toubro Ltd at the current market price of Rs 2077 apiece. The large cap company has a market capitalisation of Rs 2,91,936.29 crore.

L&T, the engineering behemoth, with its decades of experience in engineering & construction and robust track record is well poised to be the key beneficiary of capex upcycle driven by investments in both public and private sectors, said the report. Check key takeaways below:

1. Larsen & Toubro Ltd Stock Performance

The last trading price of the stock is Rs 2077 apiece with an intraday gain of 1.35%. The stock's 52-week high is Rs 2095 apiece and 52-week low is Rs 1456 apiece, respectively.

2. Larsen & Toubro Ltd Return

The stock has given a return of 70% in last 5-years, 56% in last 3-years, and 17% in last 1-year. The shares of the stock surged 8% in last 3-months, and 5% in last 1-month.

3. Valuation

According to Sharekhan, "L&T's H1FY23 performance has been commendable despite cost pressures in its core business and supply chain challenges. Further, a robust order intake and pipeline gives us comfort. International outlook is also buoyant given a healthy order pipeline and emerging opportunities in non-oil segments as well. Over the long term, L&T remains at the forefront to reap benefits from the AtmaNirbhar Bharat scheme with its diversified businesses across sectors such as infrastructure, heavy engineering, hydrocarbons, defence, IT as well as green energy. The company is the best proxy for domestic capex upcycle. We maintain a Buy on the stock with an unchanged SOTP-based price target (PT) of Rs. 2,390."

Key Risks: Slowdown in the domestic macro-economic environment and geo-political conflicts on international front can adversely impact its order prospects.

4. Larsen & Toubro Ltd About

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing, and financial services and is one of the largest players in India's private sector.

A strong customer-focused approach and constant quest for top-class quality have enabled the company to attain and sustain a leadership position in major lines of businesses over eight decades. The company operates in over 30 countries worldwide.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.