L&T bags orders worth `1,306cr ::Angel Broking

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


L&T bags orders worth `1,306cr
Larsen & Toubro's (L&T) construction arm bagged new orders worth over
`1,306cr under various divisions during February 2012. The power T&D segment
secured orders worth `514cr from various clients, which includes a major order
from Power Grid Corporation for the construction of a transmission line. The
buildings and factories division won orders worth `451cr for the construction of
residential towers and for civil, structural and mechanical erection works for the
construction of a cement plant. L&T construction also secured an order worth
`220cr for the construction of 23MW Solar PV plant on EPC basis in Rajasthan.
Lastly, `121cr order was received from Kolkata Metro Rail for the construction of
2.7km viaduct, station building and other related works.
At the CMP of `1,299, the stock is trading at PE of 18.3x FY2013E earnings,
which is below the historical trading multiple for L&T. We have used the SOTP
methodology to value the company to capture all its business initiatives and
investments/stakes in the 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 `1,607, which provides 23.7% upside
from current levels. Hence, we maintain our Buy rating on the stock.