L & T (Code : 500510) : Larsen & Toubro manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys. Recently the company has bagged four orders aggregating Rs 605 crore from the water and steel sectors. As per reports, L&T and WL Ross & Co, a firm belonging to private equity investor Wilbur Ross have signed a preliminary agreement to jointly bid for a controlling stake in the fraud-hit IT firm Satyam Computer. The two companies are reportedly looking to offer Rs 2,000 crore for a minimum 51% stake in Satyam, and if successful, will invest another Rs 2,000 crore to revive the firm. L&T will contribute 51% or more to the stake buy, with Ross bringing in the rest of the funding. L&T, which has 12.04% holding in Satyam, reportedly has Rs 4,550 crore cash to pursue the acquisition. The stock has risen 46.95% from a recent low of Rs 561.80 on 9 March 2009. The company’s current equity is Rs 117.12 crore. Face value per share is Rs 2. The current price of Rs 825.55 discounts the company’s Q3 December 2008 annualized EPS of Rs 103.90, by a PE multiple of 7.95.
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