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L&T bags an order worth `1,450cr
Larsen & Toubro (L&T) has bagged an offshore process platform order in KG basin worth
`1,450cr from Gujarat State Petroleum Corporation (GSPC). This is a second contract
received by L&T from GSPC. Last year, L&T had received GSPC’s first offshore wellhead
platform contract for the development of Deen Dayal West field in KG basin. With this
order, the outstanding order book stands at ~`1,20,932cr (2.7x FY2011E revenue),
thereby providing revenue visibility.
At the CMP of `1,506, the stock is trading at 18.1x FY2013E earnings and 3.1x FY2013E
P/BV on a standalone basis. We have used the SOTP methodology to value the company
to capture all its business initiatives and investments/stakes in different businesses.
Ascribing separate values to its parent business on a P/E basis and investments in
subsidiaries on P/E, P/BV and mcap basis, our target price works out to `2,034, which
provides 35.1% upside from current levels. We recommend Buy on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
L&T bags an order worth `1,450cr
Larsen & Toubro (L&T) has bagged an offshore process platform order in KG basin worth
`1,450cr from Gujarat State Petroleum Corporation (GSPC). This is a second contract
received by L&T from GSPC. Last year, L&T had received GSPC’s first offshore wellhead
platform contract for the development of Deen Dayal West field in KG basin. With this
order, the outstanding order book stands at ~`1,20,932cr (2.7x FY2011E revenue),
thereby providing revenue visibility.
At the CMP of `1,506, the stock is trading at 18.1x FY2013E earnings and 3.1x FY2013E
P/BV on a standalone basis. We have used the SOTP methodology to value the company
to capture all its business initiatives and investments/stakes in different businesses.
Ascribing separate values to its parent business on a P/E basis and investments in
subsidiaries on P/E, P/BV and mcap basis, our target price works out to `2,034, which
provides 35.1% upside from current levels. We recommend Buy on the stock.
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