Larsen & Toubro (L&T) share price 2.5 percent in early trade on Monday after the company declared its December quarter earnings. Larsen & Toubro on Friday (January 28) reported a 17 percent on-year decline in consolidated net profit to Rs 2,055 crore for the quarter ended December 2021.
Larsen & Toubro (L&T) share price shed 2.5 percent in early morning trade on January 31 after the company on Friday (January 28) reported a 17 percent on-year decline in consolidated net profit to Rs 2,055 crore for the quarter ended December 2021.
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At 11 am, however, the stock gave up initial losses to trade higher at Rs 1,908.05, up 9.25 points, or 0.49 percent up.
The decline in the bottomline is largely on account of a higher base in the year-ago quarter which included the sale of commercial property in the realty business and gain on divestment from discontinued operations of the electrical and automation business.
In its quarterly earnings report, L&T said the increase "reflects an improving project execution momentum and robust growth in the IT&TS portfolio". International sales during the quarter at 14,541 crore constituted 37 percent of the total revenue, the company said.
The country's largest infrastructure company, however, reported an 11 percent on-year growth in consolidated revenues to Rs 39,563 crore during the quarter in review.
Citi retained a "buy" rating on L&T with a target price of Rs 2,460. The company's Q3 performance was in line with estimates and it has strong order inflow prospects for Q4, according to the brokerage. The brokerage said the L&T stock is attractively priced and remains its top pick.
Credit Suisse revised L&T FY22/23/24 EPS estimates to Rs 68/93/114 from Rs 77/99/119. The brokerage said the upside could originate from lower interest cost, asset sales and restructuring. The brokerage maintained an "outperform" rating on the infrastructure stock on the back of procyclical traction on revenue, inflows and margins.
JPMorgan maintained an "overweight" rating on L&T's stock and cut its target price to Rs 2,160 from Rs 2,300. The brokerage said that the prospects and execution outlook of the company looks solid, despite a Q3 miss. Long-awaited growth pick up versus muted orders may weigh on the stock in the near term.
Kotak Institutional Equities maintained a "buy" rating on L&T's stock with a target price of Rs 2,450. In-line print with strength in IT business covers for the weakness in core business margin, according to the brokerage. Kotak also cut the core business estimates by 4 percent and noted how improving refinancing of Hyderabad Metro debt could boost prospects of medium-term returns.