Maintain 'hold' on Larsen & Toubro – TP Rs.1400 - Geojit BNP Paribas Financial Services

- L&T reported in line result for 1QFY13, adjusted for a one-time loss, forex and other income.

- Management reiterated guidance and highlighted that quarterly earnings could be volatile.

- The stock is trading close to 15 multiples of FY13 expected standalone EPS and it seems that the current price factors in all the positives.

- Announcement on order flows and the divestment of stakes in non-core long gestation projects may act as positive catalysts for the stock price. However, it seems that any major upside is unlikely in the stock price and it may remain range bound between Rs.1200 to Rs.1500.

- Company specific upside risks include better than expected order flows, revenue or margin and better valuation for assets.

- Downside risk if the company disappoints on any of the above metrics.

Source : Equity Bulls

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