Monday 21 February 2011

Why I want you to buy Larsen & Toubro- Target 2078

Larsen & Toubro is the India Top Engineering goods company having over more than 25 years of existence.

Sector:                        Construction & Engineering
Face Value:                 Rs 2 Per share
52 Week High/ Low:   2212/1410
Dividend %age:           625
One Year Return:        15.1%

 Having a huge order book at 115400 Crores which is 2.5 time its FY10 total revenues, it is sitting at a pretty comfortable state with a expected EPS growth @ 19% for FY12. The govt is also realising the importance of spending in Infrastructure which is expected to reach to 9% of the total GDP of India which would help this company to grow at a much fast pace as compared to its peers L&T has also signed nuclear agreements with nuclear equippments manufacturers to cater to its demand.
Its Dharma Port , 50:50 JV with Tata Steel has already started its operations & is expected to contribute to its revenues.

A key concern for the company could be high interest rates shrinking the growth prospects of the company

Larsen & Toubro has a market cap of 99899 Crore & is  tarding at the PE ratio of 18-19 times forward earnings at 1640.

It is one of the best stocks in Engineering sector. It is also one of the major holdings in Mutual Fund Portfolio by assest managers of Mutual funds.
It is going to prove a major assest to the 1.3 trillon economy of India

I expect a target of 2078 with a time horizon of 1 year



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Regards
http://www.wealthbazaar.in/



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