Commenting on L&T’s quarterly earnings, Amar Ambani, Head of Research, IIFL said, “L&T’s Q2 FY16 operational performance was weaker than estimates due to margin compression in infrastructure segment and an EBIT loss in heavy engineering segment. Topline of Rs. 23,393cr was above our estimate led by higher execution in power segment. The company has reduced its guidance on order inflow and revenue which would lead to earnings cut in FY16 and FY17. However, post the correction, the stock appears attractive. We maintain our Buy rating on the stock as it is best placed to take advantage of a pickup in domestic infrastructure segment.”
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