Analyst Research Report Snapshot

Title:

Larsen & Toubro Ltd. | Q1FY14 Result Update

Price:

$46.00

Provider:

IndiaNivesh Securities Pvt Ltd

Date:

23 Jul 2013

Pages:

5

Type:

AcrobatPDF

Companies referenced:

LART.NS

Available for Immediate Download
Summary:

 Result Updates Larsen & Toubro Ltd. | Q1FY14 Result Update Larsen & Toubro (L&T) reported bad set of numbers, at it disappointed us (and street) both, at operating and profitability level. Outlook: Even though the company is likely to attain its Order Inflow growth guidance for FY14E, we remain concerned about: Lower EBITDA margin of 8.5% reported in Q1FY14 (lowest in last 8 quarters). Likelihood of continued shift in Order Book mix (towards the low margin international business). Management expects ~20% of the total order wins in FY14E from International markets (Middle East & Africa). In Q1FY14, Order wins from International markets contributed 14% of the total. Continued pressure on the working capital cycle (managements guided that working capital as % of sales would remain high in 16.0-20.0% range for next few quarters). We have not made any changes to our estimates. Valuation: At CMP of Rs 902, L&T is trading at FY14E and FY15E, P/E multiple of 15.2x and 13.5x, respectively (on FY14E and FY15E EPS estimates of Rs 59.1 and Rs 66.8, respectively). We do not have any rating on the stock.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.