Sharekhan has maintained its hold rating on Larsen & Toubro in its April 13, 2009 research report.
“Larsen & Toubro (L&T) has lost the bid for the troubled software company, Satyam Computer Services (Satyam). Tech Mahindra, which has emerged as the top bidder with an offer of Rs 58 per share, will pay Rs 1,757 crore for a 31% stake in Satyam. Media reports indicate that L&T had made a final offer of Rs 49.50 for per share of Satyam. L&T holds an 11.5% stake in Satyam which had been acquired at an average price of around Rs 80 per share. At the current market price, the stock is trading at 12.7x its FY2010E consolidated earnings. The key overhang relating to the Satyam issue has now been cleared which ought to improve the sentiments towards the stock. We maintain our Hold rating on the stock with the price target under review,” says Sharekhan’s research report.
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