Brokers' call: Prabhudas upgrades L&T to buy

Prabhudas Lilladher has upgraded Larsen & Toubro from an accumulate to a buy rating with a target price ofRs 1,704. “L&T is certainly facing the turmoil of a slow economic growth environment.

With a recent price fall (3M underperformance- 14.2% relative to Nifty and 16.7% on absolute basis), despite a healthy set of announcements in the recently announced Budget, L&T is trading at P/E of 10.3x FY15E core earnings.

However, with the recent news flow in terms of order intake being positive, L&T looks on a comfortable wicket and poised to end the year with a 15% order inflow growth,” it said in a report.