Kotak upgrades L&T to 'Buy' with target of Rs 2051

MUMBAI: Kotak Securities has upgraded rating on Larsen & Toubro to ‘Buy’ after the stock witnessed sharp decline in the past few sessions. The brokerage says that the third quarter numbers would be keenly watched by the market for management's outlook on order pipeline.

“The L&T stock has fallen by 10% in the past few trading sessions possibly on concerns including likely lower order accretion during the quarter, increase in material prices and higher borrowing cost.

We have been maintaining our accumulate rating on the company due to limited upside to our target price. But with recent price correction, upgrade the stock to BUY with target price of Rs 2051.

Concerns include delay in order finalizations which may hamper the company's ability to deliver on its order intake guidance,” the report said.