Kotak Securities Stock Idea: Buy Larsen & Toubro with Target Rs 3620
Kotak Securities has issued a buy recommendation for Larsen & Toubro Ltd. (L&T), with a target price of Rs 3620, representing a potential upside of approximately 1.7%. The current market price of L&T is Rs 3558.3. This recommendation is based on the company's strong order book, diversified business portfolio, and robust execution capabilities. L&T is a leading engineering and construction company in India, with a presence across various sectors such as infrastructure, power, and manufacturing. The company has a strong order book of over Rs 3.5 trillion, which provides visibility for future revenue growth.
About Larsen & Toubro:
Larsen & Toubro (L&T) is a leading Indian multinational conglomerate headquartered in Mumbai. It is engaged in various industries, including engineering, construction, manufacturing, technology, and financial services. L&T has a global presence with operations in over 30 countries and an annual revenue of over $20 billion. The company is known for its expertise in infrastructure projects, power generation, heavy engineering, and shipbuilding. L&T plays a significant role in India's economic development and is a key player in the country's infrastructure sector.
52 Week Price Trend:
Larsen & Toubro (L&T) is currently trading at Rs 3558.3, hovering between its 52-week high of Rs 3963.5 and low of Rs 3175.05. The stock has witnessed a gradual recovery from its low point, indicating potential buying interest. However, it remains below its previous high, suggesting that bullish momentum may have slowed. Investors should monitor L&T's performance closely to determine whether it can regain its previous highs or face further consolidation in the coming weeks.
Stratzy's MOST Analysis:
Stratzy's MOST framework assigns a BB- rating to LT, indicating Medium Fundamental Risks. This rating is based on the assessment of four pillars: Management, Outlook, Safety, and Trend. The BB- rating suggests that LT has moderate strengths and weaknesses in these areas. While the company may have a strong management team and a positive outlook, there may be concerns about its financial safety or industry trend.
Company's Fundamentals:
Larsen & Toubro (NSE: LT) is a leading Indian engineering and construction company. As of today, its stock price is trading at a price-to-earnings (PE) ratio of 35.76, indicating that investors are willing to pay 35.76 times the company's annual earnings to own its shares. The price-to-book (PB) ratio of 5.4 suggests that the company's market value is 5.4 times its book value, which represents the value of its assets minus liabilities. Finally, the dividend yield of 0.8% indicates that the company pays out 0.8% of its share price as dividends to its shareholders annually.
Fundamental and Technical information provided in this blog were last updated on 17 Jan, 2025
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