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L&T bags orders worth `1,629cr
Larsen & Toubro’s (L&T) construction division has bagged orders worth `1,629cr in
the building and factories segment. An order worth `900cr was secured for the
construction of a major IT campus facility. Orders for the balance `729cr are
received from various clients for the construction of a commercial building,
university, residential tower and automobile factory. With these orders, the
company’s outstanding order book stands at ~`1,43,814cr (3.3x FY2011
revenue), which provides good revenue visibility.
At the CMP of `1,387, the stock is trading at 18.7x FY2013E earnings and 2.9x
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 `1,714, which provides a 23.6% upside from current levels.
We recommend a Buy rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
L&T bags orders worth `1,629cr
Larsen & Toubro’s (L&T) construction division has bagged orders worth `1,629cr in
the building and factories segment. An order worth `900cr was secured for the
construction of a major IT campus facility. Orders for the balance `729cr are
received from various clients for the construction of a commercial building,
university, residential tower and automobile factory. With these orders, the
company’s outstanding order book stands at ~`1,43,814cr (3.3x FY2011
revenue), which provides good revenue visibility.
At the CMP of `1,387, the stock is trading at 18.7x FY2013E earnings and 2.9x
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 `1,714, which provides a 23.6% upside from current levels.
We recommend a Buy rating on the stock.
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