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
Heavy rains and a landslide in the Himalayan region of Kashmir killed 17 people, police said on Tuesday, as authorities continued working to rescue stranded villagers, with unseasonal rains raising fears of flash floods in the mountainous north. Full Article