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L&T bags orders worth `1,015cr
Larsen & Toubro’s (L&T) building and factories division has bagged orders aggregating to
`1,015cr from various clients during 2QFY2012. In the commercial buildings segment,
orders valued at `692cr are for the development of IT campuses and construction of a
commercial establishment. Orders worth `323cr are for the construction of a residential
tower and from ongoing projects in the factories segment. With these orders, the
company’s outstanding order book stands at ~`1,38,527cr (3.2x FY2011 revenue),
providing good revenue visibility.
At the CMP of `1,561, the stock is trading at 19.5x FY2013E earnings and
3.3x 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 `1,903, which
provides 21.9% 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 `1,015cr
Larsen & Toubro’s (L&T) building and factories division has bagged orders aggregating to
`1,015cr from various clients during 2QFY2012. In the commercial buildings segment,
orders valued at `692cr are for the development of IT campuses and construction of a
commercial establishment. Orders worth `323cr are for the construction of a residential
tower and from ongoing projects in the factories segment. With these orders, the
company’s outstanding order book stands at ~`1,38,527cr (3.2x FY2011 revenue),
providing good revenue visibility.
At the CMP of `1,561, the stock is trading at 19.5x FY2013E earnings and
3.3x 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 `1,903, which
provides 21.9% upside from current levels. We recommend Buy on the stock.
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