L&T - Cautious on domestic economy; unique advantages can foster growth - Kotak

We present the takeaways from the management meeting—(1) very cautious about domestic economy/opportunities in the medium term; (2) need to build overseas business even at lower margins; (3) the worsening macro situation over the past two months has not yet affected project execution; (4) returns expectations in the assets business is lower but there is no debt repayment issue; and (5) despite the macro issues, L&T is well placed with low net leverage, backlog (Rs. 1,650 bn) and diversification. It still aims for growth. We retain our ADD rating on a strong core business performance/associated returns and attractive valuations.

Source : Equity Bulls

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