CORRECTED-MARKET EYE-Credit Suisse downgrades L&T to underperform

Wed Nov 7, 2012 2:06pm IST

Related Topics

Stocks

   

(Corrects headline and first bullet to say the stock was
downgraded to 'underperform' from 'neutral')
* Credit Suisse downgrades Larsen & Toubro 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 0555 GMT, shares were up 0.81 percent at 1,679 rupees.

 (manoj.dharra@thomsonreuters.com)
FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage