Top Stocks Today : IIFL Securities has Buy call on Larsen & Toubro. - April 01

IIFL Securities recommends buying Larsen & Toubro (L&T) shares with a target price of Rs 3925, 2% above the current market price of Rs 3847.5. The brokerage believes that L&T's strong order book, execution capabilities, and diversified business portfolio position it well for growth. The company's recent acquisition of Mindtree and its focus on infrastructure and renewable energy sectors are seen as other positive factors.

About Larsen & Toubro.:

Larsen & Toubro (L&T) is a leading Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates across sectors including Infrastructure, Construction, Heavy Engineering, Water and Effluent Treatment, Power, and Defense. Founded in 1938, L&T is headquartered in Mumbai and has a global presence in over 30 countries. With a workforce of over 120,000 employees, L&T has consistently ranked among the top companies on the Forbes Global 2000 list and is a constituent of the BSE SENSEX and NSE NIFTY indices.

52 Week Price Trend:

Larsen & Toubro (L&T) is currently trading at Rs 3847.5, well above its 52-week low of Rs 2085. Despite recent market volatility, the stock has remained resilient and is currently hovering near its 52-week high of Rs 3738.9. L&T's strong performance is primarily attributed to its robust order book, which has grown significantly over the past year. The company has also benefited from government initiatives in infrastructure and defense, which has led to increased demand for its products and services. As the Indian economy continues to grow, L&T is well-positioned to benefit from the increased demand for infrastructure and construction projects.

Stratzy's MOST Analysis:

LT's BBB rating from Stratzy's MOST framework indicates a medium level of fundamental risk. This rating is based on an evaluation of LT's management team, outlook for future growth, safety of its financial position, and overall trend in its performance. The BBB rating suggests that LT has some strengths in these areas, but also has some weaknesses that need to be addressed in order to improve its overall risk profile.

Company's Fundamentals:

Larsen & Toubro (NSE:LT) is a blue-chip Indian multinational engineering and construction company. As of March 2023, LT's stock price-to-earnings (PE) ratio stands at 37.71, indicating that investors are willing to pay ₹37.71 for every ₹1 of earnings. The price-to-book (PB) ratio of 6.08 suggests that the company's market value is 6.08 times its book value, indicating it is fairly valued. Additionally, LT offers a dividend yield of 0.69%, providing investors with a regular income stream.

Fundamental and Technical information provided in this blog were last updated on 30 Mar, 2024

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