Outperform Larsen & Toubro, target Rs 1925: Credit Suisse

Credit Suisse has Outperform call on Larsen & Toubro Ltd. with a target price of Rs 1925.0. The current market price of Larsen & Toubro Ltd. is 1474.45. Time period given by analyst is year, when Larsen & Toubro Ltd. price can reach defined target. The global brokerage firm expects execution to pick-up given the low base of FY16, the size of the backlog, and pick-up in specific large projects. Lower inflation and interest rates would help the company by improving client financials, and project viability. Peaking of support to subsidiaries will lead to strong cash flows, which can lead to a rise in dividends. The global investment bank expects ME orders to remain flat at Rs 300 bn over FY17-19E but expects FY17 engineering procurement & construction (EPC) inflows at Rs 1,274 bn.