NRI Business Associate
L&T has paid all of its free cash flows (FCF) generation to shareholders and has not invested on a net basis in subsidiaries over FY16-21
CLOSED
Larsen & Toubro (L&T): BUY
Dated: 21 st June 2021
CMP: Rs.1476
Fair Value: Rs.1850
Potential Upside: 25.3%
Market Cap: Rs.2,07,717 Cr
Time Frame: 12 months
- L&T has paid all of its free cash flows (FCF) generation to shareholders and has not invested on a net basis in subsidiaries over FY16-21. The company has set the stage to deliver a high dividend payout ratio.
- L&T reported a healthy and in-line operating result in Q4FY21. The company reported a 6/14% yoy growth in the core E&C business revenues/EBITDA (operating profit), respectively for Q4FY21.
- We factor (1) 15% hit-rate in L&T’s Rs9.6 lakh cr order prospects pipeline for FY22 and (2) 70 bps margin accretion by FY23 over depressed FY21 base.
- We note strong visibility for growth over FY22 and FY23 based on the current order backlog.We expect mid-to-high teens growth in revenues/EBITDA/PAT over FY20-23.
- We retain 17x earnings multiple for the core business. We arrive at the sum of the parts (SoTP) based fair value of Rs1,850.
Note: The above is a brief note on the company, based on the inputs of KIE research report dated 15 th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE
Looking to invest in Larsen & Toubro and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges .
DID YOU KNOW? As an NRI/OCI, you can invest in IPOs, Mutual Funds and purchase Shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI 3-IN-1 Account
OPEN YOUR NRI ACCOUNT NOW!
Fill in your details and we will get in touch with you .
Contact Us
NRI Product Page
Authorised Person
Lakshit Financial is Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621. Lakshit Financial Registered Office: ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges.
Charges for Other Services | Disclaimer | Privacy & Security | BSE | NSE | SEBI | SCORES | Anti Money Laundering Measures | Important Policies | Dos & Donts | Advisory for investors