Buy L&T, target Rs 1750: CLSA

CLSA maintains buy on L&T but raised its 12-month target price to Rs 1750 from Rs 1600 earlier. The new Ind AS norms would optically reduce gearing from 1.8x to 1.5x, feel the global investment bank.

From April 1, the new accounting standards (Ind-AS) kicked in for Indian firms. The transition from Indian GAAP to Ind AS is aimed at helping companies migrate to international accounting regime.

Under new Ind AS norms the total debt totals up to Rs 16,000 crore which would hike L&T's net worth. The new provisions, FCCB interest will hurt recurring EPS by 2 per cent. Ind AS would also eliminate any treasury gains via sale of subs stakes, said the CLSA note.