November 1, 2018 / 4:22 AM / in 20 days

BUZZ-India's L&T jumps; Jefferies, HSBC raise PT on Q2 profit beat

** Industrial conglomerate Larsen & Toubro Ltd’s shares surge as much as 6.7 pct to 1,384 rupees in their biggest daily pct gain since Aug. 20

** Stock is top pct gainer on NSE index

** Q2 profit jumped over 20 pct to 22.30 bln rupees ($302.11 mln), beating analysts’ estimates, as the co got higher orders in qtr

** HSBC raises PT to 1,535 rupees from 1,660 rupees, maintains ‘buy’ rating; believes co’s focus on 5-yr strategic plan will be value accretive for shares

** Co retained guidance on order inflows of 10-12 pct in FY and this points to potential risk of order inflow slowdown during H2 as election code of conduct (Indian general elections in 2019) can slow down project awards - HSBC

** Jefferies raises PT to 1,925 rupees from 1,297.50 rupees; rating ‘buy’

** “L&T’s share price reflects those few times when risk:reward is favourable, with downside protection from execution ramp up and upside from capex recovery,” - Jefferies

** Deutsche Bank analysts write that water, railways, hydrocarbon and power can support ordering, while core infra orders are likely to be weak in H2

** More than 3.5 mln shares traded as of 0417 GMT, 1.2 times their 30-day avg of about 2.8 mln shares

** 24 of 35 brokerages covering the stock rate it “buy” or higher, four “hold” and two “sell” or lower; their median PT is 1,591.50 rupees - Refinitiv data ($1 = 73.8150 Indian rupees)

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