Larsen et Toubro (L&T) share price fell 2% intraday to Rs 1,334 each on BSE today, despite a 5% year-on-year increase in net profit to Rs 2,467 crore in October-December . However, revenues during the period were slightly lower at Rs 35,596 crore as the Covid-19 restrictions continued to impact the execution of the project site and the operations of the Hyderabad metro. So far in January, Larsen & Toubro shares have gained 3%. At least three research and brokerage firms have recommended “buying” L&T shares after the third quarter results, up by up to 19%. The company reported its highest order intake on record in a quarter, which jumped 76% year-on-year to Rs 73,233 crore. While its order book stood at an all-time high of Rs 3.13 lakh crore during the quarter under review.
L&T shares today ended down 0.12% at 1,359.75 on BSE. Anand Rathi Financial Services analysts have retained the “buy” rating with a target price of Rs 1,616 each, on the back of a robust order book (Rs.3.3trn), a strong balance sheet and no close competitors . Analysts expect a further resumption of execution with labor availability and no supply chain issues.
Larsen & Toubro’s shares will need to jump nearly 16% from the previous close to hit the target price of Rs 1,575 each set by JM Financial Institutional Securities Ltd. The brokerage firm has raised its target price by 3. 6% from Rs 1,520, earlier. Given that infrastructure margins are currently stable, the brokerage firm expects L&T to improve in the future through operating leverage through higher revenues. In addition, L&T remained positive in net cash at the consolidated level even though it repaid a debt of Rs 9,000 crore in the 9 months of fiscal 21 on the debt of Rs 12,000 incurred in the first quarter of the year. ‘exercise 21.
Those at Yes Securities are seeing a rally of 16 percent of the L&T share price, with a target price of Rs 1,584 each. According to the brokerage company, the rise in income from the main activity, the recovery of infra margins, the prudent allocation of capital and the improvement of yield ratios over fiscal years 21-23 are the main triggers of the actions. . He expects L&T execution to gain ground over the next few quarters thanks to a strong order book of Rs 3.3 trillion (3.5x the sales of the TTM Core business).
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