Hold L&T stock if you want stabiliy in your portfolio: Harendra Kumar, Elara Capital

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on the current outlook of the L&T stock. Excerpts:

ET Now: What do you make of L&T numbers?

Harendra Kumar: There is no incremental gain from the stock. If you look to defend your portfolio or want stability, L&T will continue to trade at these levels.

However, if you are looking to create alpha, there is no hope as the margin profile is deteriorating and so is the working capital cyclical.

Thus, don't expect a PE re-rating in such a scenario. Therefore, you may need to hold this stock.