Buy Larsen & Toubro, target price Rs 1156: Emkay Global

Emkay Global has given a buy rating to Larsen & Toubro with a target price of Rs 1156. The share price moved down by 0.61 per cent from its previous close of Rs 905.50. The stock’s last traded price is Rs 900.

Larsen & Toubro Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 126408.44 Crore) operating in Construction sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 21259.97 Crore, down 51.95 % from last quarter Sales of Rs 44245.28 Crore and down 28.26 % from last year same quarter Sales of Rs 29635.95 Crore. The Company reported net profit after tax of Rs 645.07 Crore in latest quarter.


Investment Rationale
With govt finances being strained, the brokerage expects infrastructure spending to remain muted across the board, including in already-placed orders, impacting execution and working capital. Contribution from the Service business is likely to moderate the impact.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 18.5 per cent, DIIs 36 per cent and public and others 45.5 per cent.