Stock Martket BSE » Larsen & Toubro

Intraday Tips 08 July 09

admin — Wed, 08 Jul 2009 03:29:20 +0000

Sell Tata Power 1085,Target 1: 1075, Target 2:1065 Stop Loss 1101
Buy ITC 215.1,Target 1: 217.5, Target 2:222.1 Stop Loss 209.8

Sell Reliance 1848.8, Target 1:1831, Target 2:1825 Stop Loss 1865
Buy Glenmark Pharma 240.3,Target 1:242, Target 2:247 Stop Loss 234.5

Sell Larsen and Toubro 1468, Target 1:1445,Target 2:1424 Stop Loss 1481

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Intraday Tips 08 july 09

Free Intraday Tips 08 July 09

Stock Advice On Larsen & Toubro

admin — Fri, 17 Apr 2009 08:28:55 +0000

Stock Advice On Larsen & Toubro - EDELWEISS

INR 57.8 bn worth orders booked; is the tide turning?
From March 30–April 9, 2009, Larsen & Toubro (LT) has announced orders worth INR 57.8 bn, primarily in power and process verticals. For Q4FY09, the company has announced orders worth INR 51.4 bn (order intake in Q4FY09 will, however, be higher as small-ticket orders have not been announced). Even with the spate of orders in the last week of Q4FY09, we believe the initial order accretion guidance (30% growth) for FY09 is unlikely to be met. While the order accretion growth for 9mFY09 has been strong at 30%, inflows in oil & gas (O&G) have been significantly below estimates; for 9mFY09, O&G order intake has been INR 43 bn (down 32% Y-o-Y). While the current order announcements by LT in the power and infrastructure verticals, is certainly a positive, we believe it is too early to conclude that the same will translate in to higher-than expected order inflows in FY10.

Power and infrastructure likely to drive order accretion growth in FY10
In FY10, LT’s order accretion is likely to be driven primarily by power and infrastructure verticals. In power, LT expects equipment orders from the 11 negotiated tenders from NTPC and DVC. In infrastructure, railways, roads, and airports would remain key drivers; railway orders are, however, expected to pick up significantly only post FY11 on the back of the Dedicated Freight Corridor (planned investment of INR 600 bn by 2016). Although order accretion has been weak in the company’s O&G vertical in FY09, management expects orders to start flowing in from Q1FY10.

Execution issues on 6% book; likely to rise in our view
Currently, our main concern is execution of current orders in the process vertical. LT’s order book is at INR 688 bn (37:63 public versus private; private includes 11% from group development projects); 6% of these could get delayed primarily in metals and real estate verticals, according to the management. We believe this percentage could be higher given that the company’s exposure to key problem verticals of metals, real estate, and O&G is at 40% of the current order backlog.

Outlook and valuations: Uncertainty overhang; maintain ‘REDUCE’
We value subsidiaries at INR 123. Hence, the implied P/E for the parent business is 14x and 12.5x for FY10E and FY11E, respectively. In the face of an uncertain macroeconomic environment, which could put the private sector capacity addition under a cloud, we believe upsides to valuations from current levels are likely to be capped over the medium term. We maintain ‘REDUCE’ recommendation on the stock.

Hold Larsen & Toubro: Sharekhan

admin — Wed, 15 Apr 2009 12:02:27 +0000

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.

L & T : Strong portfolio with strong orderbook

admin — Tue, 14 Apr 2009 04:45:41 +0000

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.