Visit http://indiaer.blogspot.com/ for complete details L&T bags `1,449cr order
Larsen & Toubro (L&T) has bagged an order valued at `1,449cr from DB Power Limited,
promoted by the Bhaskar Group. L&T will execute the complete Balance of Plant (BOP)
package for DB Power’s 2x600MW thermal power plant at Baradarha, Chhattisgarh. The
entire plant will be commissioned within 31 months. L&T is one of the few companies to
bag consistent orders in the recent times, especially in the power space. At `1,994 –
FY2012E P/E of 28.4x and FY2012E P/BV of 4.9x on standalone basis – we believe that
most of the positives are factored in and, hence, maintain our Neutral rating on the stock.
We have used the sum-of-the-parts (SOTP) methodology to value the company to capture
all its business initiatives and investments/stakes in the different businesses and have
arrived at a Target Price of `2,024.
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