Larsen & Toubro's target Rs 3660: Kotak Securities's Top Stock to Buy Today

Kotak Securities has a positive outlook on Larsen & Toubro (L&T) and has issued a buy call on the stock. The target price set by the brokerage is Rs 3660, indicating a potential upside of approximately 1.2% from the current market price of Rs 3617.7. This buy call suggests that Kotak Securities believes L&T's strong fundamentals and growth prospects make it an attractive investment opportunity for investors.

About Larsen & Toubro:

Larsen & Toubro (L&T) is a leading Indian multinational conglomerate headquartered in Mumbai. It operates in sectors such as engineering, construction, manufacturing, infrastructure, and financial services. L&T was founded in 1938 and has grown to become one of India's largest and most respected companies. It is involved in a wide range of projects, including construction of bridges, dams, flyovers, buildings, airports, and other infrastructure. L&T also manufactures and supplies equipment and machinery for various industries. Its financial services arm, L&T Finance Holdings, offers a range of services including loans, insurance, and investment products.

52 Week Price Trend:

Larsen & Toubro (L&T) shares have witnessed significant recovery in recent months, with the current market price (CMP) of Rs 3617.7 approaching its 52-week high of Rs 3738.9. The stock has rebounded from its 52-week low of Rs 2085 as investors regain confidence in the company's growth prospects. L&T's diversification across multiple sectors, including engineering, construction, manufacturing, and technology, has provided resilience amidst market volatility. The company's strong order book, focus on innovation, and strategic acquisitions position it well for future growth.

Stratzy's MOST Analysis:

LT's BBB rating from Stratzy's MOST framework indicates a medium level of fundamental risk. The MOST framework assigns ratings based on Management, Outlook, Safety, and Trend. LT's BBB rating suggests that while its management, outlook, and trend are generally sound, there may be some areas for improvement in safety. This rating reflects a balanced assessment of LT's strengths and weaknesses, indicating that it is a moderately risky investment with potential for both growth and stability.

Company's Fundamentals:

Larsen & Toubro (NSE: L&T) is a leading Indian multinational conglomerate engaged in engineering, construction, and manufacturing. As of November 2023, L&T's stock has a Price-to-Earnings (PE) ratio of 37.71, indicating its value relative to its earnings. The Price-to-Book (PB) ratio of 6.08 compares the market value of the company to its book value, providing insights into its financial strength. Additionally, L&T currently offers a dividend yield of 0.69%, representing the annual dividend payout as a percentage of its current stock price. These metrics provide investors with valuable information to assess L&T's financial performance and potential investment opportunities.

Fundamental and Technical information provided in this blog were last updated on 23 Aug, 2024

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