Bullish on L&T valuations: Sandip Sabharwal, Prabhudas Lilladher

In a chat with ET Now, Sandip Sabharwal, CEO-PMS, Prabhudas Lilladher, shares his views on L&T.

ET Now: What makes you bullish on L&T valuations?

Sandip Sabharwal: The main reason is that the company continue to get orders, even at a time when the overall macro story is not very strong. This is a time when other highly leveraged infrastructure names are in deep trouble. They are going to CDR and they are not in a position to take any fresh orders. So the market share of L&T is expected to go up as it will get a lot of orders, which it would not have got in a scenario where the competition was more intense. Competitive intensity has reduced and that benefits the largest company. L&T does not have balance sheet of funding issues, which is obviously a positive in the current environment. Valuations are relatively reasonable. We are expecting that in the second half some sort of pick up will happen, so it is a combination of all of these.