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Showing posts with label L&T. Show all posts
Showing posts with label L&T. Show all posts

Wednesday, September 23, 2015

LARSEN & TUBRO LTD : BEST PLAY & GRAB AT EVERY DIPS !!!

Scrip Code: 500510 LT
CMP:  Rs. 1484.95; Market Cap: Rs. 1,38,144.74 Cr; 52 Week High/Low: Rs. 1893.80 / Rs. 1401.00. 
Total Shares: 93,02,98,999 shares; Promoters : Not Defined – 00.00 %; Total Public holding 5 % or more : 34,09,54,585 shares – 36.65 %; Total Public holding 1 % or more : 41,41,62,953 shares – 44.52 %; Public holding : 17,51,81,461 shares – 18.83 %Book Value: Rs. 398.31; Face Value: Rs. 2.00; EPS: Rs. 52.26; Dividend: 812.50 % ; P/E: 28.41 times; Ind. P/E: 16.72; EV/EBITDA: 18.27. Total Debt: Rs. 90,698.61 Cr; Enterprise Value: Rs. 2,22,997.45 Cr.

LARSEN & TOUBRO LTD: LARSEN & TOUBRO LTD was founded in 1938. Larsen & Toubro Limited operates as a technology, engineering, construction, and manufacturing company worldwide. Larsen’s divisions include Engineering and Construction Projects (E&C), Heavy Engineering (HED), Engineering Construction and Contracts (ECC), Electrical and Electronics (EBG), Machinery and Industrial Products (MIPD), and Information Technology & Engineering Services. These divisions undertake engineering design and construction of infrastructure and industrial projects, including civil, mechanical, and electrical & instrumentation engineering. The customer profile includes names, such as Samsung, Chevron, Bechtel, Kvaerner, Pirelli, Siam Michelin, and Goodyear. The Heavy Engineering (HED) division manufactures and supplies custom designed and engineered critical equipment and systems to the needs of core-sector industries and the defense sector. It is the preferred supplier of equipment for a select range of products, globally. The Division has entered into Shipbuilding business and engages in construction of specialty commercial vessels and warships for the navy, as well as the coast guard.  The Engineering Construction and Contracts (ECC) division delivers engineering, procurement, and contract solutions in the oil and gas, petrochemicals, power, and water space industries. The Electrical and Electronics (EBG) division offers solutions in low & medium voltage categories. Its businesses consists of switchgear, switchboards for different applications, including marine, meters, automation systems, petroleum dispensing pumps, medical equipment and tooling solutions and has operations at different locations in India (two in Mumbai and one each in Ahmednagar, Mysore, Faridabad and Coimbatore) and one unit for manufacturing operations in China. The Information Technology and Engineering Services Information and Technology Services division offers e-Engineering solutions, including product design and engineering analysis, engineering process support, production and plant engineering, asset information management, and design automation to high end technology verticals, such as automotive, aerospace, marine and ship design, plant engineering, and industrial products. This division also provides embedded systems and solutions comprising supply of hardware, application software, and enclosure design for electronics product design and development in automotive, medical, semiconductor, and industrial products. On November 30, 2009, Nuclear Power Corporation Of India Limited and Larsen & Toubro Ltd. announced the formation of a JV company to produce special steels and ultra-heavy forgings. On January 22, 2010, Larsen & Toubro Ltd. formed a JV with Sapuracrest Petroleum Bhd to undertake installation of pipelines and construction of offshore rigs and platforms in India, West Asia and South East Asia. In July 2012, L&T’s subsidiary Tamco Switchgear acquired Henikwon Corporation Sdn Bhd. L&T does business in Malaysia, the United States, the Unite Kingdom, Brazil, Saudi Arabia, the United Arab Emirates, Qatar, Bangladesh, and Sri Lanka. Larsen & Tubro Ltd is compared globally with Hyundai Development Company Ltd of South Korea, Daelim Industrial Company Ltd of South Korea, Nippo Corporation of Japan Ssangyong Engineering & Construction, Aker Solutions ASA and JTEKT Corporation.

Investment Rationale:
Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. L&T addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power, Process Industries and Defense – for customers in over 30 countries around the world. L&T is engaged in core, high impact sectors of the economy and their integrated capabilities span the entire spectrum of ‘design to deliver’. With over 7 decades of a strong, customer focused approach and a continuous quest for world-class quality, L&T have unmatched expertise across Technology, Engineering, Construction, Infrastructure Projects and Manufacturing, and maintain a leadership in all their major lines of business. Every aspect of L&T's businesses is characterised by professionalism and high standards of corporate governance. Sustainability is embedded into our long-term strategy for growth. The Company’s manufacturing footprint extends across eight countries in addition to India. L&T has several international offices and a supply chain that extends around the globe. The Infrastructure spending in India as a percentage of GDP has declined meaningfully to just 3 % to 4 % from peak levels of 7 % to 8 %. And large projects in segments like urban infrastructure, water & irrigation, railways, and power T&D would pick up. The manufacturing segments like defence, power generation, and forgings provide strong opportunities. Another important driver is industrial capex – particularly hydrocarbons, metals, and fertilizers – both in India and overseas. L&T have received repeat orders from its loyal customers in the IT and residential business lines. Kannur and Cochin green field airports were secured during the year emphasizing its expertise in building aviation infrastructure. L&T also secured major orders from its esteemed customers like Bombay Realty, Omkar developers, Oberoi and DLF group for the construction of elite high rise residential towers in western and northern India. In southern India, prestigious orders were received from Prestige, Provident and Skylark group for the construction of residential towers. With the modernization of Tier 1 & 2 city airports and the kick start of Navi Mumbai green field airport will drive growth in domestic aviation sector. In the international arena, with falling oil prices, may have some impact on the Middle East economy, but there is hope that infrastructure spending will continue strongly in view of Expo 2020 (UAE) & FIFA 2022 (Qatar) and good business prospects are envisaged for Stadiums, Metro Rails and Healthcare related projects. The nuclear segment of the company is promising with the development-expansion of projects in existing locations like Kudankulam 3 & 4, Tarapur and Kalpakkam. Many new bridge projects in Western and Northern India, a few more special bridge packages from DFCC and High Speed Rail network are expected in India. L&T recently signed an MOU with the French firm Areva for cooperation to maximize localization for the 9000 MW Jaitapur Nuclear Plant in Maharashtra. L&T currently has a tall order backlog of more than Rs. 2.3 lakh crore, which is close to thrice its FY2015 revenue (excluding IT and finance businesses). Given the impeccable execution track record of L&T and average execution period of 24-30 months of the existing backlog, the revenue outlook remains very healthy. The management retains its guidance for an order inflow growth and revenue growth at 15 % for FY2016. It is expected that the ordering activities would shoot up once the domestic investment cycle revives and L&T is most suitably placed to capture opportunities owning to diversified presence, strong capability and healthy balance sheet. The management guides for a 100- basis point (BPS) year-on-year (Y-o-Y) margin expansion in FY2016 on the back of improvement in the performance of hydrocarbon business (worst is over) and stable margin in the infrastructure business; therefore, healthy bottom-line growth to follow too. Recently, Bain Capital bought 85.2 million shares, or a 4.95 % stake, in L&T Finance from parent firm L&T through an open market transaction. The share sale was via exchanges and was concluded at an average price of Rs.70 per share, implying a deal size of Rs. 597 crore. L&T will reduce its stake in L&T Finance to about 62.5 % following the conversion of the warrants. L&T has so far held 72.5 % in its finance subsidiary. In addition to that , L&T’s buildings & factories segment has secured an order worth Rs. 740 crore for construction of a commercial complex in Gurgaon, which is scheduled to be completed in 24 months. In water & effluent treatment business, it received a water supply order of Rs. 573 crore from the rural water supply & sanitation department, Telangana. Its power transmission & distribution segment has secured a turnkey order worth Rs. 192 crore from the Transmission Corporation of Telangana for supply, erection, testing and commissioning of a 400 kV quad moose double circuit transmission line which will run across Adilabad and Karimnagar districts of Telangana. Also, L&T’s subsidiary has received from Delhi Metro Rail Corporation for the supply, installation, testing and commissioning of ballast-less track of standard gauge. Additional orders, across businesses of L&T Construction, have also been received from various ongoing jobs. L&T is going for listing of its IT subsidiary: L&T Infotech by offering 15 % stake in the proposed IPO, which could unlock value. The IT subsidiary is growing at 20 % growth rate currently with a fairly high base and is having earnings before interest, tax, depreciation and amortisation (EBITDA) margin profile of around 20 %. This along with the strong pedigree makes a case for relatively premium valuation for L&T Infotech. Moreover, the company is constantly looking for other value unlocking opportunities to fund its future growth in the core engineering business. As investment cycle in India is reversing after a long; the addressable order prospect for L&T is estimated to be above Rs. 5 lakh crore in future, considering the potential revival in the domestic investment cycle ahead. While investments in road and power transmission are going on currently, large investments in railways and water segment are expected to start soon. Nevertheless, the outlook for L&T’s three other segments (hydrocarbon, metallurgical and power) are expected to remain weak for some time.

Outlook and Valuation:
Larsen & Toubro’s (L&T) is a USD 15 billion technology, engineering, construction, projects, manufacturing and financial services conglomerate, with global operations. The company is engaged in core, high-impact sectors – infrastructure, construction, defence, hydrocarbon, heavy engineering, power, aerospace, shipbuilding, electrical & automation, mining and metallurgy. Its integrated capabilities span the entire spectrum of 'design-to-deliver', and it offers turnkey EPC solutions in its major business lines. Its track record covers products, projects and processes executed to international benchmarks. Every aspect of L&T's businesses is characterized by professionalism and high standards of corporate governance. Sustainability is embedded into its long-term strategy for growth. The Company's manufacturing footprint extends across multiple countries in addition to India. L&T has several international offices and a supply chain that extends around the globe. It has projects like Airports in India and the Middle East Metro rail systems for Riyadh, Qatar and major Indian cities. Projects in large infrastructure include bridges and highways - from Jordan to Malaysia. In Technology, L&T is contributing to key missions like the building of India's first nuclear-powered submarine, maiden missions to the moon and Mars. For Hydrocarbon projects in the Middle East, Africa, South East Asia and India, L&T is building the world's longest heated and insulated oil pipeline. Also building the world's largest coal gasifier made in India and exported to China. L&T has continuously evolved by building new skill sets and competencies to effectively benefit from emerging trends, and hence L&T focuses on Portfolio rationalization. L&T has incubated and grown service businesses like IT and finance on a wide range. It is also expanding the share of manufacturing businesses like power BTG, defence, and forgings, by creating independent companies for different businesses and listing subsidiaries, it has kept business structure simple and promoted managerial talent. Also L&T is attempting to correct capital allocation through various initiatives & focusing on improving RoE through monetization of mature assets, exiting non-core activities, and fund infusion (including listing of subsidiaries) and this will improve its consolidated RoE. L&T has invested near about Rs. 100b in setting up manufacturing businesses for defense, power BTG, forgings, which are difficult to replicate and this will position L&T as a dominant player. The Indian capex cycle is believed to be on recovery mode. The recent burst of policy measures would ease environment for capex. This will call economists to cut rates, and will give thrusts to stronger recovery of Capex and a full-fledged recovery will be seen only in FY2017. The slowdown in order inflows from the Middle East markets coupled with revival in domestic capex cycle should lead to a shift in the order inflow mix more towards the domestic markets, going forward. On the back of shift in order book towards domestic markets, there could be a uptick in execution. Accordingly, L&T could have a 16.2 % top-line CAGR over FY2015-2017E. Given that L&T is currently sitting on an order book which gives revenue visibility for over 30 months, this shift in order inflow mix should help the company in faster margin recovery, expanding its EBITDA margins by 0.32 % during FY2015-17 to 11.7 %. The company retained its guidance on both revenue and order intake growth at 15 % for FY16, while EBITDA margins are expected to rise by 100bp (ex-services business) on account of loss avoidance from the hydrocarbons business. Core E&C revenue could double over the next three years, as domestic intake in FY15 was INR943b while revenue was INR460b. The Portfolio churn’ in concession portfolio and service segments would aid value unlocking as L&T Infotech & Tech Services IPO is being expected by July 2016. On Financial side the Q1FY16 Standalone revenue of L&T grew 4 % YoY to Rs. 1,0710 crore. Its Infrastructure segment posted strong revenue growth of 16 % YoY while power segment, after many quarters of decline, grew 12 % YoY in Q1FY16. In Q1FY16, the hydrocarbons segment reported a robust 41 % jump in revenues coupled with positive 4 % EBITDA margin. L&T recorded a 21 % YoY decline in consolidated order inflows given the high base of order intake in Q1FY5. Hence, order inflows for Q1FY16 were at Rs. 26376 crore. The order backlog as of Q1FY16 stood at Rs. 2,39,000 crore, up 22 % YoY. Order inflows have perked up in FY15 (Rs 1.4tn, up 19 % YoY) and consolidated order backlog is up 28 % YoY to Rs 2.3tn. With an expected pickup in domestic projects execution management has guided for 15 % growth in consolidated order inflow & revenue for FY16. L&T is very well positioned to benefit from gradual recovery in the domestic capex cycle, given its diverse range of sectoral exposure, strong balance sheet and better cash flow generating potential in comparison to its peers, which are struggling with higher leverage, and strained cash flows. L&T is an established leader with excellent execution track record over many business cycles. And L&T remains the best proxy to investment revival in India. Hydrocarbon business should also come out of red in FY16 as the company has finished losses on low margin legacy orders. At the current market price of Rs. 1,484.95, the stock is trading at a PE of 25.91 x FY16E and 20.39 x FY17E respectively. The company can post Earnings per share (EPS) of Rs. 57.30 in FY16E and Rs. 72.80 in FY17E. The fair value of L&T on stand-alone basis using SOTP comes at Rs. 1,880 per share, while the valuation of its investments in subsidiaries comes at Rs. 408.12 per share. It is expected that the company’s surplus scenario is likely to continue for the next three years keeping its growth story in the coming quarters also. 

SOTP Valuation :-
Business Subsidiary
Value Per Share (in  ₹ Rs.) 
L&T Core Business
1,470.00
L&T Hydrocarbons
16.00
L&T Infotech
137.00
L&T Finance*
76.12
Infra Development projects
69.00
Power Development projects
37.00
Power Equipments Venture
7.00
Shipbuilding & Container Port
23.00
Sp. Steel & Heavy Forging Venture
9.00
Other Investments
34.00
TOTAL
1,878.12
*Note: L&T holding in L&T Finance is reduced to 62.5 %.

KEY FINANCIALSFY14FY15FY16EFY17E
SALES ( Crs)56,598.8957,017.4065,529.9078,635.80
NET PROFIT (₹ Cr)5,493.105,056.205,329.206,768.90
EPS ()52.9050.6057.3072.80
PE (x)30.7029.1030.2224.10
P/BV (x)4.003.703.403.10
EV/EBITDA (x)20.8018.8018.9015.20
ROE (%)12.8013.2011.7013.60
ROCE (%)9.008.007.608.90

As I always say, I am a long term believer in markets & I do respect the markets and will keep a strict stop loss of 8 % on every purchase(Why Strict stop loss of 8 % ?) - Click Here

*As the author of this blog I disclose that I do not hold LARSEN & TUBRO Ltd in my any of the portfolios.


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This is a personal blog and presents entirely personal views on stock market. Any statement made in this blog is merely an expression of my personal opinion. These informations are sourced from publicly available data. By using/reading this blog you agree to (i) not to take any investment decision or any other important decisions based on any information, opinion, suggestion, expressions or experience mentioned or presented in this blog (ii) Any investment decisions taken if any would be his/hers sole responsibility. (iii) the author of this blog is not responsible.
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Wednesday, April 3, 2013

LARSEN & TOUBRO : IT's NOT ONLY ENGINEERING, ITS ALSO INVESTEERING!!!

Scrip Code: 500510 LT
CMP:  Rs. 1425.40; Accumulate at Rs. 1370 - Rs. 1400 levels.
Short term Target: Rs. 1500, Medium to Long term Target: Rs. 1765; 
STOP LOSS – Rs. 1311.36; Market Cap: Rs. 87,682.40 Cr; 52 Week High/Low: Rs. 1720.00 / Rs. 1106.05
Total Shares: 61,51,42,429 shares; Promoters : 26,50,96,686 shares –42.85 %; Total Public holding : 35,00,45,743 shares – 56.90 %; Book Value: Rs. 409.54; Face Value: Rs. 2.00; EPS: Rs. 81.95; Div: 825.00 % ; P/E: 17.39 times; Ind. P/E: 13.80; EV/EBITDA: 11.42.
Total Debt: 9,895.77 Cr; Enterprise Value: Rs. 94,158.17 Cr.

LARSEN & TOUBRO LTD: LARSEN & TOUBRO LTD was founded in 1938. Larsen & Toubro Limited operates as a technology, engineering, construction, and manufacturing company worldwide. Larsen’s divisions include Engineering and Construction Projects (E&C), Heavy Engineering (HED), Engineering Construction and Contracts (ECC), Electrical and Electronics (EBG), Machinery and Industrial Products (MIPD), and Information Technology & Engineering Services. These divisions undertake engineering design and construction of infrastructure and industrial projects, including civil, mechanical, and electrical & instrumentation engineering. The customer profile includes Samsung, Chevron, Bechtel, Kvaerner, Pirelli, Siam Michelin, and Goodyear. The Heavy Engineering (HED) division manufactures and supplies custom designed and engineered critical equipment and systems to the needs of core-sector industries and the defense sector. It is the preferred supplier of equipment for a select range of products, globally. The Division has entered into Shipbuilding business and engages in construction of specialty commercial vessels and warships for the navy, as well as the coast guard.  The Engineering Construction and Contracts (ECC) division delivers engineering, procurement, and contract solutions in the oil and gas, petrochemicals, power, and water space industries. The Electrical and Electronics (EBG) division offers solutions in low & medium voltage categories. Its businesses consists of switch-gear, switchboards for different applications, including marine, meters, automation systems, petroleum dispensing pumps, medical equipment and tooling solutions and has operations at different locations in India (two in Mumbai and one each in Ahmednagar, Mysore, Faridabad and Coimbatore) and one unit for manufacturing operations in China. The Information Technology and Engineering Services Information and Technology Services division offers e-Engineering solutions, including product design and engineering analysis, engineering process support, production and plant engineering, asset information management, and design automation to high end technology verticals, such as automotive, aerospace, marine and ship design, plant engineering, and industrial products. This division also provides embedded systems and solutions comprising supply of hardware, application software, and enclosure design for electronics product design and development in automotive, medical, semiconductor, and industrial products. On November 30, 2009, Nuclear Power Corporation Of India Limited and Larsen & Toubro Ltd. announced the formation of a JV company to produce special steels and ultra heavy forgings. On January 22, 2010, Larsen & Toubro Ltd. formed a JV with Sapuracrest Petroleum Bhd to undertake installation of pipelines and construction of offshore rigs and platforms in India, West Asia and South East Asia. In July 2012, L&T’s subsidiary Tamco Switchgear acquired Henikwon Corporation Sdn Bhd. L&T does business in Malaysia, the United States, the Unite Kingdom, Brazil, Saudi Arabia, the United Arab Emirates, Qatar, Bangladesh, and Sri Lanka. L&T LTD is compared globally with Hyundai Development Company Ltd of South Korea, Daelim Industrial Company Ltd of South Korea, Nippo Corporation of Japan Ssangyong Engineering & Construction, Aker Solutions ASA and JTEKT Corporation.

Investment Rationale:
Larsen & Toubro’s (L&T) has a strong order growth from the Buildings and Factories (B&F) segment and this helped to offset weak order inflows from other segments such as power, oil & gas and process. As the order inflows from other segments have dried up, L&T has turned aggressive in the buildings segment which was previously less focused area for L&T. L&T has emerged as a preferred contractor in the premium residential segment which has helped the company in growing its order book, and incrementally the company is shifting its focus into mid-income housing also, to maintain order inflow growth. The real estate contracting business is a fragmented industry with the presence of many organised and unorganised players. Some of the larger companies operating in this business are namely Shapoorji Pallonji; Simplex; Nagarjuna Construction; Ahluwalia Contractors; Gammon India; Pratibha Industries; IL&FS Engineering & Construction (formerly Maytas Infra); Man Infra; Vascon Engineers; Supreme Infrastructure; and Ramky Infra. L&T has recently bagged orders from premium clients. The competitive landscape has turned favorable for L&T as other real estate contracting companies have been battling with stressed balanced sheets and increasing receivables that limit their ability to bid for new projects. Some large players in real estate contracting, like, Gammon India, Nagarjuna Constructions and Simplex Infra, were inflicted by the increasing debt burden due to their asset-heavy balance sheets. Given L&T’s well capitalized balance sheet with well-respected execution abilities in the industry, it was one of the obvious choices for developers like DLF and Godrej Properties to outsource their construction contracts to best managed contractors like L&T which helped L&T to gain market share in Building & Factories segment. L&T has also forayed into the real-estate segment as a developer for some projects, eg, Emerald Isle in Powai, Mumbai, Crescent Bay in Parel, Mumbai, Eden Park, Chennai and as a co-developer for Omkar Veda, Parel, Mumbai

Outlook and Valuation:
1 x 388.5 MW Combined Cycle Power Plant in
Andhra 
Pradesh
L&T on 1st of April 2013 announced to have secured India’s first ever complete EPC order for 2 x 660 MW Super-critical Thermal Power Project on a complete Engineering Procurement & Construction (EPC) basis from Rajasthan Rajya Vidyut Utpadan Nigam Ltd worth Rs. 5689 Cr. This order involves designing, engineering, manufacture, supply, erection and commissioning of two coal-fired thermal units of 660 MW each with super-critical parameters at Chhabra in Baran District in Rajasthan. This project has a stringent completion schedule of 42 months for unit 1 and 45 months for unit 2. With this contract, L&T now has orders for supply and installation of 26 Super-critical Steam Generators and Steam Turbine Generators of 660 MW, 700 MW and 800 MW. L&T on 28th March 2013 completed its acquitions of Audco India Ltd – India’s leading manufacturer of Industrial valves and a JV with Audco UK a wholly owned subsidiary of Flowserve Corporation, USA (Flowserve). This acquisition is in line with L&T’s overall portfolio rationalization, this deal will help grow L&T’s Valve business globally with comprehensive range of valve offerings. L&T looks good buy looking at its strong order book, infrastructure opportunities and potential of value unlocking in its subsidiaries. Its core business would drive earnings, as it has robust order book and good revenue visibility. Subsidiaries like IT Services, and Infra would be lead to better valuation. The infra-led growth would also be backed by growing portfolio and geographical reach. L&T is expected to clock in a 20 % CAGR over FY12-15E in revenues keeping the Book-to-Bill ratio (2.1-1.8x) trend more or less the same. However, any adverse mix in terms of order inflow may alter the margins. L&T is expected to have a 10 % CAGR in standalone earnings for the period of FY12-15E which is again not an out-of-reach of any one’s assumption. Order wins in Jan-Feb 2013 were close to Rs. 3,900 Cr which were a mix of B&F (Government), Defence, Hydrocarbon and Power. Further, with the impetus given to DMIC, DFC and other BOT projects in transportation (Budget 2013-14), along with a strong financial backing, L&T is expected to be able to secure sizable orders. With just a month away from end of FY13E, order inflow stands at Rs. 64,000 Cr, implying Rs. 17,100 Cr order inflow in March 2013. Historically, Q4 has been a strong period where the order inflows are sizable. The fair value of L&T on stand-alone basis using DCF comes at Rs. 1,361.53/share, while the valuation of its investments in subsidiaries comes at Rs. 403.5/share totaling to value of Rs. 1764.90/share. On the valuation front, L&T could post EPS of Rs. 77.36 for FY14E & Rs. 88.55 for FY15E. Any further price correction provides a good opportunity to Buy L&T at at a target price of Rs. 1500 for shorter term and for long term it would be Rs. 1765.00.

Business Subsidiary FY13E
Rs/Share
L&T Financial Holding Ltd
177.37
L&T Infotech
87.00
L&T International FZE
25.00
L&T MHI Boilers
2.00
L&T MHI Turbine Generators
2.00
L&T Special Steels and 
Heavy Forgings Pvt Ltd (NPCIL JV)
11.00
EWAC Alloys
5.00
L&T Power Ltd
3.00
L&T Power Development Ltd 
29.00
L&T IDPL
65.00
L&T Real Estate Projects 
29.00         
L&T Shipbuilding
14.00
Other manufacturing sub. , JV           
10.00
Loans and Advances to subsidiaries
45.00
TOTAL
504.37
Less:20% Holding Company Disco.
100.87
GRAND TOTAL
403.50

KEY FINANCIALSFY12 FY13EFY14EFY15E
SALES (Rs. Crs)53,170.50 60,875.20 67,840.20 77,302.70 
NET PROFIT (Rs. Crs) 4,456.504,733.204,737.605,423.10
EPS (Rs.)71.1177.2977.3688.55
PE (x)19.2017.7017.6015.40
P/BV (x)3.302.902.602.30
EV/EBITDA (x)14.5013.4012.5010.80
ROE (%)18.9017.6015.6016.00
ROCE (%)9.208.608.208.60


I would buy LARSEN & TOUBRO LTD with a price target of Rs. 1765 for Medium to Long term and Rs. 1500 for the Short term players. As I always say, I am a long term believer in markets & I do respect the markets and will keep a strict stop loss of 8 % or Rs. 1311.36 on every purchase. (Why Strict stop loss of 8 % ?) - Click Here

READ HERE TO KNOW MORE ON LONG TERM INVESTING - CLICK HERE

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