Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� �
L&T bags orders worth `700cr in Oman
Larsen & Toubro’s (L&T) hydrocarbon division has bagged an order worth `700cr from
Petroleum Development Oman. The order is for setting up a greenfield project planned to
treat an average of 3mmscmd of gas. With this order, the company’s outstanding order
book stands at ~`1,39,227cr (3.2x FY2011 revenue), which provides good revenue
visibility.
At the CMP of `1,493, the stock is trading at 18.7x 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 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 27.5% 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 `700cr in Oman
Larsen & Toubro’s (L&T) hydrocarbon division has bagged an order worth `700cr from
Petroleum Development Oman. The order is for setting up a greenfield project planned to
treat an average of 3mmscmd of gas. With this order, the company’s outstanding order
book stands at ~`1,39,227cr (3.2x FY2011 revenue), which provides good revenue
visibility.
At the CMP of `1,493, the stock is trading at 18.7x 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 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 27.5% upside from current levels. We recommend Buy on the stock.
No comments:
Post a Comment