November 13, 2017 / 5:43 AM / 6 days ago

BUZZ-India's Larsen & Toubro falls on muted order growth guidance

** Shares of Larsen & Toubro Ltd drop as much as 4.5 pct to 1,208.20 rupees

** Co on Saturday posted a 27 pct increase in Q2 profit but said its order inflow fell 8 pct on a subdued investment environment (bit.ly/2zAkSI6)

**“It (weak orders) has led to management softening its FY 18 guidance on new orders to expect nil-to-marginal growth,” - Deutsche Bank analysts write

** But a 7 pct growth in orders for H2 FY18 is likely, given large infra and defense projects at bidding stage, Deutsche Bank adds, raising the stock’s PT to 1,475 rupees from 1,350 rupees

** “Slowdown in ordering is a bigger concern, though prospects remain strong,” analysts at Nomura say, but adding L&T’s Q2 operational performance is encouraging

** Twenty-eight of 36 analysts covering the stock have a “buy” rating, seven have “hold” while one has sell; median PT is 1,329.50 rupees - Thomson Reuters Eikon data

** Stock had risen about 41 pct this year up to Friday’s close

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