L&T - Q1FY14 Result Update - Kotak

- L&T came out with numbers that were lower than our expectations on all counts except order intake.

- Domestic execution continues to remain sluggish. Management has maintained its revenue guidance of 15-20% revenue growth though we remain apprehensive.

- Order intake on track but as much as 76% were accounted by infrastructure as other segment especially Power has slowed down sharply.

- Earnings growth likely to remain weak in FY14. Thus, we revise rating to Accumulate (from BUY at Rs 903) with a revised target price of Rs 996 (Rs 1067 earlier).

- Risks - Rise in slow-moving orders; Weak capex cycle.

Source : Equity Bulls

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