Add Larsen and Toubro: IIFL
IIFL has maintained its add rating on Larsen and Toubro in its May 29, 2009 report.
“L&T’s adjusted profit increased 30% YoY to Rs 11.4 billion in 4QFY09, ahead of our and consensus estimates, driven by a positive surprise in margins. Margins were helped by 90bps saving in employee costs, which benefited from falling interest rates as per AS-15 provisions. The company has guided for 15-20% revenue growth and stable EBITDA margins in FY10. We upgrade FY10 and FY11 earnings estimates by 9% to factor in the increase in our margin assumptions. However, valuations are still demanding, at adjusted PER of 21.2 on FY11ii. The company needs to positively surprise on 25% order intake growth guidance for FY10 for valuations to sustain. Key drivers of order inflow growth over FY08-09—metals and buildings—are unlikely to help. Meeting the order inflow guidance is contingent on acceleration in domestic public sector award activity and success in new geographies. Expectations from the new government are running high; delivery on the ground needs to be closely monitored. Maintain ‘ADD’,” says IIFL’s report.
Tags: iifl, l&t, larsen and tubro, short L&T target, short term picks
Similar Posts:
Latest Query
- by Sam
Market Stats
Search Our Archives
Research Desk
- Stocks Trading above their 50 day moving average - DMA In Stock Research
- Download free Ebooks based on Technical Analysis In Personal Training
- TOP 100 Stocks with the Highest P/E as on July 14th, 2013 In Stock Research
- TOP 100 Stocks with the Lowest P/E as on July 14th, 2013 In Stock Research
- Charting Pathsala - Your guide to Techincals In Technical Analysis
