Maintain 'buy' on L & T – TP Rs.1500 - Geojit BNP Paribas Financial Services

- The company reported better than expected PAT for FY12 on higher revenue.

- Revenue at Rs.18460 crore increased 20% yoy. EBITDA at Rs.2560 crore increased 9.4% yoy.

- Overall EBITDA margin declined to 13.9% from 15.2% for the previous year.

- PAT at Rs.1860 crore increased 24% yoy.

- Order inflow at Rs.70500 crore for FY13 is lower 12.5% yoy.

- The management is confident of achieving FY13 guidance. Expected growth in order intake and revenue is 15-20%.

- Order intake guidance is achievable due to spill-over of orders from FY12, higher international orders and better cost competitiveness.

- Buy rating on the stock is maintained with a target price of Rs.1500 over one year.

- Lower than expected order intake, higher raw material cost and no reduction in interest rate are risks to the target price.

Source : Equity Bulls

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