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L&T share price falls 2% post October-December quarter results; should you buy or sell?

So far in January, Larsen & Toubro shares have gained 3 per cent.

Larsen and Toubro (L&T) share price fell as a lot as 2 per cent intraday to Rs 1,334 apiece on BSE as we speak, regardless of a 5 per cent on-year enhance in web revenue to Rs 2,467 crore in October-December quarter. However, revenues in the course of the interval have been barely decrease at Rs 35,596 crore, as Covid-19 restrictions continued to have an effect on project web site execution and Hyderabad metro operations. So far in January, Larsen & Toubro shares have gained 3 per cent. At least three analysis and brokerage companies have advisable to ‘buy’ L&T shares post third quarter outcomes, with as much as 19 per cent upside. The company reported its highest ever contemporary order consumption in a quarter, which surged 76 per cent on-year to Rs 73,233 crore. While its order e-book stood at a historic excessive of Rs 3.13 lakh crore in the course of the quarter below assessment.

L&T shares ended 0.12 per cent down at 1359.75 apiece on BSE as we speak. Analysts at Anand Rathi Financial Services have retained ‘buy’ ranking with a goal price of Rs 1,616 apiece, on the again of sturdy order backlog (Rs.3.3trn), sturdy stability sheet and no close to competitor. The analysts count on an additional pick-up in execution with labour availability and no supply-chain associated points.



It will take Larsen & Toubro shares to leap almost 16 per cent from the earlier shut to the touch the goal price of Rs 1,575 apiece pegged by JM Financial Institutional Securities Ltd. The brokerage agency has raised its goal price by 3.6 per cent from Rs 1,520, earlier. As infrastructure margins are at present steady, the brokerage agency expects L&T to enhance in future on working leverage from greater revenues. Besides, L&T remained web money optimistic on the consolidated stage, even because it repaid debt of Rs 9,000 crore in 9M FY21 of the Rs 12,000 debt taken in 1Q FY21.

Those at Yes Securities, see a 16 per cent rally in L&T share price, with a price goal at Rs 1,584 apiece. According to the brokerage agency, core business income ramp up, infra margin recovery, prudent capital allocation and bettering return ratios over FY21‐23E are key stock triggers. It expects L&T’s execution to achieve traction in subsequent few quarters on the again of robust order backlog of Rs 3.3 trillion (3.5x TTM Core business gross sales).

(The stock suggestions on this story are by the respective analysis and brokerage agency. Financial Express Online doesn’t bear any duty for his or her funding recommendation. Please seek the advice of your funding advisor earlier than investing.)

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