Fwd: Larsen & Toubro Q2FY12 Result Update; Lowered Guidance; Maintain ACCUMULATE; Target: Rs 1,603

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Deepak Vaishnav

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Oct 29, 2011, 3:19:43 AM10/29/11

Larsen & Toubro

Lowered Guidance; Maintain ACCUMULATE

ACCUMULATE

CMP: Rs 1,336 Target Price: Rs 1,603

n Mixed Bag performance in Q2FY12 – Ebidta margins decline 30 bps yoy but APAT grew 28% to Rs8.0 bn – led by higher other income

n Q2FY12 order inflows of Rs161 bn (down 21% yoy) & H1FY12 down 11% to Rs330 bn – Asking rate for H2FY12 increases Order book of Rs1,422 bn – 3.2X sales

n Lowered guidance – order inflows growth of 5% and Ebidta margins decline 75-125 bps – Same remains factored in our estimates

n L&T at attractive valuations of 14.9X FY13E earnings, but lacks re-rating catalysts- Maintain ACCUMULATE with target price of Rs1603/Shares

Regards,

Pritesh Chheda

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com

Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241

Prerna Jhavar
Research Analyst \| Emkay Global Financial Services Ltd. \| www.emkayglobal.com \| Email : prerna...@emkayglobal.com
Board No. : +91-22-6612 1212 \| Extn. : 337 \| DID : 6612 1337 \| Mob : +91981935 0593 \|

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Larsen and Toubro Q2FY12 Result Update.pdf

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