January 8, 2013 / 6:27 AM / 5 years ago

L&T falls on brokerage downgrades

Reuters Market Eye - Larsen & Toubro Ltd (LART.NS) shares ended down 1.34 percent after Citigroup and Barclays downgraded the engineering conglomerate on concerns over order cancellations and weak investment cycle.

Labourers work inside a steel factory on the outskirts of Agartala, April 9, 2009. REUTERS/Jayanta Dey/Files

Citi downgraded L&T to ‘neutral’ from ‘buy’ and cut its target price to 1,732 rupees from 1,855 rupees, citing cancellations in the second quarter of fiscal 2013, slow-moving orders, as well as weaker domestic economic growth.

Barclays downgraded L&T to ‘equal-weight’ from ‘overweight’ and cut target price to 1,750 rupees from 1,851 rupees.

The bank says it expects L&T to meet its fiscal 2013 guidance but cautions that weakness in the investment cycle in fiscal 2014 will post a risk to order estimates.

Reporting by Manoj Dharra

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