Larsen & Toubro - Down, But not out; Retain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs 1326
Target Price: Rs 1700

Challenging business conditions in L&T's core operations and stagnant levels of activity. The company's investments are in the incubation stage

Market share gains are imperative for securing order inflows. Standalone revenues and APAT growth to moderate to a CAGR of 12% and 11%, respectively, during FY13-15E

Transformation from an EPC firm to an infrastructure and finance company has resulted in balance sheet expansion; de-risking has added risks

Looking beyond near-term risks and 'No' froth in valuations. But upside capped at Rs1,700/share. Maintain ACCUMULATE.

Source : Equity Bulls

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