Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
L&T bags orders worth `1,366cr
Larsen & Toubro (L&T) has bagged EPC orders aggregating to `1,366cr from Gulf
countries. The first order worth `597cr from Saudi Electricity Company involves
construction of the 225km of 380kV transmission line project. The company has secured
two EPC orders from UAE for the construction of voltage substations and cabling work
worth `422cr and `75cr, respectively. Two EPC orders have been received from Qatar and
Muscat, which involve construction of substation and cabling work and are worth `185cr
and `87cr, respectively. Construction period for the projects is 9 to 24 months. With these
orders, the outstanding order book stands at ~`131,697cr (3x FY2011 revenue), which
provides good revenue visibility.
At the CMP of `1,646, the stock is trading at 19.9x FY2013E earnings and 3.4x 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 market capitalisation basis, our target price works out to
`2,033, which provides 23.5% 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 `1,366cr
Larsen & Toubro (L&T) has bagged EPC orders aggregating to `1,366cr from Gulf
countries. The first order worth `597cr from Saudi Electricity Company involves
construction of the 225km of 380kV transmission line project. The company has secured
two EPC orders from UAE for the construction of voltage substations and cabling work
worth `422cr and `75cr, respectively. Two EPC orders have been received from Qatar and
Muscat, which involve construction of substation and cabling work and are worth `185cr
and `87cr, respectively. Construction period for the projects is 9 to 24 months. With these
orders, the outstanding order book stands at ~`131,697cr (3x FY2011 revenue), which
provides good revenue visibility.
At the CMP of `1,646, the stock is trading at 19.9x FY2013E earnings and 3.4x 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 market capitalisation basis, our target price works out to
`2,033, which provides 23.5% upside from current levels. We recommend
Buy on the stock.
No comments:
Post a Comment