Maintain 'hold' on L&T - Geojit BNP Paribas

- 'Hold' rating is maintained on L&T. The stock is currently traded in the range of Rs.1550.

- Media reports have indicated that Dhamra Port stake sale may materialize in the near, which is believed to be in line with the company's strategy to have an asset light model.

- This transaction would free up some cash for L&T and positively impact its consolidated earnings.

- At the current level, the stock is fairly priced in line with its growth outlook and 'hold' rating on the stock is maintained.

- Stake sale in Dhamra Port is positive for L&T from the cash flow perspective. The company had invested Rs.700 crores in this asset as equity and loans.

- Risks to our rating include worse than expected order inflows, execution delays, margin pressure and regulatory issues.

Source : Equity Bulls

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