Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
L&T bags orders worth `1,610cr
Larsen & Toubro’s (L&T) metallurgical and material division has bagged orders
aggregating to `1,610cr from Tata Steel, India Bulls Power and other customers in
1QFY2012. The order from Tata Steel involves construction along with detailed
engineering and supply of balance of plant for four new coke oven batteries and
by-product plants. The estimated construction period is two and half years. Another order
from India Bulls Power worth `240cr is for civil and structural works for coal handling
plants and ash plants. With these orders, the outstanding order book stands at
~`1,40,007cr (3.2x FY2011 revenue), which provides good revenue visibility.
At the CMP of `1,739, the stock is trading at 21.0x FY2013E earnings and 3.5x 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 `2,033, which
provides 16.9% 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 orders worth `1,610cr
Larsen & Toubro’s (L&T) metallurgical and material division has bagged orders
aggregating to `1,610cr from Tata Steel, India Bulls Power and other customers in
1QFY2012. The order from Tata Steel involves construction along with detailed
engineering and supply of balance of plant for four new coke oven batteries and
by-product plants. The estimated construction period is two and half years. Another order
from India Bulls Power worth `240cr is for civil and structural works for coal handling
plants and ash plants. With these orders, the outstanding order book stands at
~`1,40,007cr (3.2x FY2011 revenue), which provides good revenue visibility.
At the CMP of `1,739, the stock is trading at 21.0x FY2013E earnings and 3.5x 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 `2,033, which
provides 16.9% upside from current levels. We recommend Buy on the stock.
No comments:
Post a Comment