Three Directors at Larsen & Toubro Limited sold 12,965 shares at between 3,482.478INR and 3,532.500INR. The significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's dir...
LARSEN & TOUBRO LTD. (IN), a company active in the Heavy Construction industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date November 12, 2021, the closing price was INR 1,959.95 an...
LARSEN & TOUBRO: Rightly placed to benefit from macro improvement (LT IN, Mkt Cap USD30.2b, CMP INR1595, TP INR1950, 22% Upside, Buy) L&T remains best story to play capex upcycle: L&T's core E&C business remains best placed to benefit from any capex upcycle, supported by its leaner asset-light business model and diversified segments. Therefore, although the Buildings and Power segments were weaker in FY21, this was largely offset by strong orders from the international Power T&D and Hydro...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
(LT IN, Mkt Cap USD15.6b, CMP INR800, TP INR1320, 65% Upside, Buy) ** In this report, we highlight some of the risks that have emerged for L&T’s (Larsen & Toubro) business in the near term and its impact on earnings/cash flow. ** We expect L&T to tide over these challenging times, thanks to multiple levers in its business, scale of operations and the re-emergence as a pure EPC company. ** However, on account of worsening working capital, growth post the lockdown in India may be spaced over th...
Q3FY20 result highlights L&T has maintained the order inflow guidance for FY20E on back of strong order inflow growth of 11% yoy in 9mFY20. The order inflow for Q3FY20 came in at Rs416bn, +2% yoy growth - a huge positive given the challenging macro, low order expectations and deferral of orders by clients. L&T will need to win Rs660bn (excluding Services revenue) worth of orders in Q4FY20 to meet the lower end guidance of Rs1.95trn, Order opportunity basket for L&T in Q4 is Rs3.0 trn (Rs2.5 ...
(LT IN, Mkt Cap USD25.5b, CMP INR1294, TP INR1680, 30% Upside, Buy) Execution to bounce back after minor blip in 3QFY20 ** L&T’s adj. PAT (excl. E&A business) grew 13.8% to INR21.6b and missed our estimates by 11%. The miss was largely led by disappointment in execution as core E&C revenue declined 2.7% YoY, thereby limiting consolidated revenue growth to 5.9%. Infrastructure segment revenue declined 5% YoY, led by execution hurdles owing to Maharashtra elections, halt in construction activiti...
(LT IN, Mkt Cap USD25.2b, CMP INR1277, TP INR1680, 32% Upside, Buy) ** Order inflow assumption trimmed on account of macro risks: We have revisited our order inflow assumption to factor in risks of capex cuts and the likely delay in order awarding from the Maharashtra government post the change of government in the state. L&T's sensitivity to the cut in Central government capex is quite limited as it forms just ~20% of the order book, with limited contribution from roads, railways and defense. ...
Q2FY20 result highlights L&T reported another quarter of strong order inflow of Rs483bn, a 20% growth yoy. Note that Q1FY20 order inflow was Rs387bn (+11% yoy). As a result, H1FY20 order inflow was Rs867bn, a growth of 16% yoy. Given the challenging macro-economic environment, Strong order inflow is quite a positive surprise. Order backlog grew by 8%yoy to Rs3.0trn, 2.9x book to bill ratio revenues (ex-services and development business revenues). Note that the Electrical and Automation busin...
LARSEN & TOUBRO: Proposed amendment on share buyback a bit late (LT IN, Mkt Cap USD25.3b, CMP INR1294, TP INR1800, 39% Upside, Buy) The latest union budget removed the tax arbitrage between dividend payout and buyback of shares, thus, limiting the extent of benefits. To start with, there is no major tax arbitrage on share buyback v/s the dividend payout option now. The latest union budget proposed 20% tax on buyback of shares, thus doing away with the tax arbitrage between dividend payo...
Q1FY20 result highlights L&T reported strong order inflow of Rs387bn, a 11% growth yoy compared to expectations of flat to decline in order inflow during the quarter. As a result, Order backlog grew by 9.4%yoy to Rs2.9trn, 2.7 x book to bill ratio revenues (on trailing twelve month basis ex-services and development business revenues). Note that the Electrical and Automation business is being treated as part of discontinued operations with receipt of CCI conditional approval in Q1FY20. Consol...
LARSEN & TOUBRO: Superior execution overshadows margin miss; Domestic E&C revenue grows robustly by 18% YoY despite election period (LT IN, Mkt Cap USD28.7b, CMP INR1410, TP INR1790, 27% Upside, Buy) PAT exceeds estimate by 10%: Including the E&A business for a like-for-like comparison, consol. revenue grew 9.8% YoY to INR311b - in line with our estimate. EBITDA grew 22% YoY to INR35.5b, with the margin at 11.4% (our estimate: 11.5%). Helped by lower depreciation and taxes (adj. tax rate...
Q4FY19 result highlights L&T reported a mixed Q4FY19 with a strong order inflow albeit slightly below our estimates. In addition, the margin in infrastructure segment was weak during the quarter. Order inflow at Rs565bn +14% yoy for Q4FY19 although below our estimate of Rs630bn and Rs1.7tn, +16% yoy for FY19. As a result, Order backlog grew by 11%yoy to Rs2.9trn, 2.7x FY19 revenues (ex-services and development business revenues). Consolidated revenue grew in line at 10.5%yoy to Rs449bn (est:...
Larsen & Toubro: Guidance reflecting caution amidst ongoing elections (LT IN, Mkt Cap USD27.2b, CMP INR1355, TP INR1850, 37% Upside, Buy) Strong execution rest fears of execution slowdown into elections: 4Q revenue grew 10.5% YoY to INR449b. This is in line with our expectation, but ended up surpassing ask rate as per management guidance. EBITDA margin stood at 12.5% (-80bp YoY) and was 140bp below our expectation. This is largely attributable to "others" segment (primarily realty segment...
Event L&T signs agreement to acquire 20.32% stake in Mindtree; seeks to acquire additional 46% through open offer and market purchases Details Acquisition details: L&T is to acquire 20.32% stake in Mindtree from Mr. V G Siddhartha (financial investor) at Rs980/share. L&T has also initiated the purchase of additional 15% stake from the market for up to Rs980/share and given an open offer to Mindtree shareholders for 31% stake at Rs980/share. The above share purchases amount to a total con...
Larsen & Toubro: MindTree acquisition plan puts buyback option to rest; Acquisition marginally EPS accretive but not preferred use of cash (LT IN, Mkt Cap USD27.6b, CMP INR1357, TP INR1610, 19% Upside, Buy) INR107b of cash earmarked for first-ever hostile takeover in IT industry: Larsen & Toubro (LT) has announced its intention to acquire a significant 66% stake in MindTree (MTCL). It has earmarked an amount of INR107b for this acquisition, valuing MTCL at INR162b (+5% v/s current market ...
Q3FY19 result highlights L&T reported a strong Q3FY19 performance dented only by weak infrastructure segment margins. PAT grew 35.8% yoy on adjusted base to Rs20.4bn (est: Rs18.3bn) led by strong execution and higher other income (Rs6.1bn against expectation of Rs2.9bn). Order inflow at Rs422bn, while down 12.3%yoy on a higher base, was sharply above est of Rs300bn led by strong order intake in infrastructure & hydrocarbon segments. Order backlog grew 4.9%yoy to Rs2.8trn, 2.7x TTM revenue (e...
Larsen & Toubro: Strong beat to estimates on all fronts (LT IN, Mkt Cap USD25.3b, CMP INR1286, TP INR1610, 25% Upside, Buy) Sales increased 24% YoY to INR357b, ahead of our estimate of INR323b, driven by Hydrocarbon (+22% YoY), Infrastructure (+24% YoY), IT (+29% YoY) and Finance (+20% YoY) segments. EBITDA increased 27% YoY to INR40b (our estimate: INR36b), with the margin coming in at 11.2%. EBITDA beat was driven by the Others and IT/TS segments. We highlight that (a) Infrastructure se...
Larsen & Toubro: A robust quarter, orders up 46% YoY (LT IN, Mkt Cap USD24.6b, CMP INR1297, TP INR1570, 21% Upside, Buy) Sales of INR321b (+21% YoY) were ahead of our estimate of INR290b, particularly driven by Hydrocarbon (+38% YoY), Infrastructure (+22% YoY), IT (+32% YoY) and Finance (+35% YoY) segments. EBITDA rose 27% YoY to INR37.8b, with the margin of 11.8% exceeding our estimate of 10.6%. The EBITDA beat can be ascribed to higher E&C margins (8.5% v/s our estimate of 8%), IT/TS an...
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