Maintain HOLD on L&T - Geojit BNP Paribas

- In Q2FY13, L&T reported YoY revenue growth of 17%, while EBITDA grew at 20%, and PAT at 9%, YoY. These were slightly higher than expectations

- L&T is on track to achieve its unchanged FY13 guidance of 15-20% growth in order inflow and revenue, and flat - 50bps pressure on EBITDA margins.

- Modest upside is possible and investors are advised to hold on to the stock for any upside on sale of stakes in its subsidiaries.

- A better than expected interest rate environment could drive valuations higher.

- Company-specific upside risks include better-than-expected order flows, revenues or margin, and better valuations for assets while at the same time there are downside risks if it disappoints on any of the above metrics.

- A possible re-rating of estimates and valuations is expected soon.

Source : Equity Bulls

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