Brokers' Call: L&T, TCS
Jefferies has maintained its ‘Buy’ rating on Larsen & Toubro and set a target price of Rs 1,675 valuing the core business at 18x PE FY13E.
By ET Bureau |
Jefferies retains buy on L&T
Jefferies has maintained its ‘Buy’ rating on Larsen & Toubro and set a target price of Rs 1,675 valuing the core business at 18x PE FY13E and subsidiaries at Rs 342/share.
L&T’s 2QFY13 results have largely been a nonevent, with EBITDA and PAT coming in-line with expectations. Revenue growth of 17% y-o-y to Rs 13,200 billion, coupled with 30 bps y-o-y rise in margins to 10.7% saw EBITDA rise of 20% y-o-y to Rs 1,410 crore. Order flow came in-line with expectations at Rs 21,000 crore, rising by close to 30% y-o-y.
BofA-ML puts a buy on TCS
Bank of America – Merrill Lynch has recommended a ‘Buy’ rating on Tata Consultancy with a target price of Rs 1575.
TCS 2Q revenue and PAT were 1% and 4% ahead of estimates. Margins 58bps lower than the estimate primarily because of large deal transitions. Large deal wins remained strong and were the highest in the past 10 quarters. Management indicated that they have also seen a pick up discretionary projects. TCS should be able to maintain margins in a narrow band helped by mix and new offerings/markets reaching critical mass.
Jefferies has maintained its ‘Buy’ rating on Larsen & Toubro and set a target price of Rs 1,675 valuing the core business at 18x PE FY13E and subsidiaries at Rs 342/share.
L&T’s 2QFY13 results have largely been a nonevent, with EBITDA and PAT coming in-line with expectations. Revenue growth of 17% y-o-y to Rs 13,200 billion, coupled with 30 bps y-o-y rise in margins to 10.7% saw EBITDA rise of 20% y-o-y to Rs 1,410 crore. Order flow came in-line with expectations at Rs 21,000 crore, rising by close to 30% y-o-y.
BofA-ML puts a buy on TCS
Bank of America – Merrill Lynch has recommended a ‘Buy’ rating on Tata Consultancy with a target price of Rs 1575.
TCS 2Q revenue and PAT were 1% and 4% ahead of estimates. Margins 58bps lower than the estimate primarily because of large deal transitions. Large deal wins remained strong and were the highest in the past 10 quarters. Management indicated that they have also seen a pick up discretionary projects. TCS should be able to maintain margins in a narrow band helped by mix and new offerings/markets reaching critical mass.
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