Reuters Market Eye - Citigroup downgrades Larsen & Toubro Ltd (LART.NS) to "neutral" from "buy", citing "rich" valuations and says Q1 "raises multiple red flags," including lower-than-expected standalone sales and margin details.
Earnings "were a warning that investors/analysts need to curb their enthusiasm,” the bank adds.
Deutsche Bank also downgrades L&T, to "hold" from "buy", citing concerns about valuations and says large order wins are in the low-margin hydrocarbons sector.
L&T falls as much as 7.9 percent, heads for biggest fall since July 2009.
(Reporting by Manoj Rawal)
Trending On Reuters
Ready for Rate Hike
Two years ago India was a "fragile five" economy growing at 5 percent, facing a severe current account deficit and the rupee at record lows as the U.S. Fed Reserve prepared to taper its stimulus programme. Today, two years into the term of RBI Governor Raghuram Rajan, India is set to confidently face the Fed's first rate rise since 2006. Full Article