28 Jan 2022 , 12:28 PM
Result date: 28th January, 2022
Recommendation: Buy
Target price: Rs. 2,436
Larsen & Toubro (L&T)’s revenue growth would be led by traction in the power, infrastructure and HC segments. NGT ban on construction in NCR could impact execution in this segment.
The company’s EBIT margins could gain from improving profitability of the infrastructure segment, though sharp decline in margins of HC segments is likely to offset these gains.
Likewise, lower other income could weigh on L&T’s PAT and reduce the positives arising from declining interest expenses, lower losses from Hyderabad metro.
Inflows are likely to remain flattish following delay in government orders, high base effect of Q3FY21. Order pipeline remains strong, led by healthy inflows in the Building & Factories and Water segments.
Important management insights to watch out for
Rs. Billion | December 2021 estimates | YoY change | QoQ change |
Revenue | 397 | 12% | 14% |
OPM (%) | 12.0 | -6 bps | 48 bps |
PAT | 23.2 | (6%) | 35% |
Inflows (ex-serv.) | 318 | (49%) | 6% |
Order book | 3,355 | 1% | 2% |
Source: Company, IIFL Research
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.