Larsen and Toubro (L&T) share value fell as significantly as 2 per cent to Rs 1,334 apiece on BSE today, regardless of a 5 per cent on-year enhance in net profit to Rs 2,467 crore in October-December quarter. However, revenues through the period have been slightly decrease at Rs 35,596 crore, as Covid-19 restrictions continued to have an influence on project web page execution and Hyderabad metro operations. So far in January, Larsen & Toubro shares have gained 3 per cent. At least 3 analysis and brokerage firms have suggested to ‘buy’ L&T shares post third quarter final results, with up to 19 per cent upside. The business reported its highest ever fresh order intake in a quarter, which surged 76 per cent on-year to Rs 73,233 crore. While its order book stood at a historic higher of Rs 3.13 lakh crore through the quarter beneath overview.
Analysts at Anand Rathi Financial Services have retained ‘buy’ rating with a target value of Rs 1,616 apiece, on the back of robust order backlog (Rs.3.3trn), sturdy balance sheet and no close to competitor. The analysts count on a additional choose-up in execution with labour availability and no provide-chain associated problems.
It will take Larsen & Toubro shares to jump almost 16 per cent from the earlier close to touch the target value of Rs 1,575 apiece pegged by JM Financial Institutional Securities Ltd. The brokerage firm has raised its target value by 3.6 per cent from Rs 1,520, earlier. As infrastructure margins are at present steady, the brokerage firm expects L&T to boost in future on operating leverage from larger revenues. Besides, L&T remained net money positive at the consolidated level, even as it repaid debt of Rs 9,000 crore in 9M FY21 of the Rs 12,000 debt taken in 1Q FY21.
Those at Yes Securities, see a 16 per cent rally in L&T share value, with a value target at Rs 1,584 apiece. According to the brokerage firm, core company income ramp up, infra margin recovery, prudent capital allocation and enhancing return ratios more than FY21‐23E are essential stock triggers. It expects L&T’s execution to acquire traction in next couple of quarters on the back of powerful order backlog of Rs 3.3 trillion (3.5x TTM Core company sales).