Credit Suisse downgrades L&T to underperform
Reuters Market Eye - Credit Suisse downgrades Larsen & Toubro (LART.NS) to 'underperform' from 'neutral', on concerns about deteriorating order flow mix and rising working capital cycle, which could impact margins and cash generation.
Over 40 percent of L&T's orders are from the Middle East and real estate segments which are "prone to execution delays" and would earn lower margin.
It would be difficult for L&T to sustain this growth momentum on its historic high inflows, Credit Suisse said in a note.
Credit Suisse believes L&T is expensive at 17.5 times FY14 parent EPS for 10 percent EPS CAGR (FY12-14E) and also does not expect any material improvement in return on equity.
At 11:25 p.m., shares were up 0.81 percent at 1,679 rupees.
- Tweet this
- Share this
- Digg this
- Facebook Q1 revenue grows 72 percent on rising mobile ads
- UPDATE 4-Boy and girl on Korean ferry drowned with life jackets tied together
- Boy and girl on Korean ferry tied life jackets together before they drowned
- Kashmiris wary as Modi challenges for power
- Preview - Liverpool seek to land knockout blow on Chelsea
The opposition Bharatiya Janata Party was set to make gains in Tamil Nadu and West Bengal that began voting on Thursday in the sixth phase of a mammoth general election that could help it build a stable majority in parliament. Read | Full Coverage: Election 2014
India may cede top rice exporter spot under Southeast Asian price onslaught. Full Article