I have been trying to ascribe some ballpark value to L&T Defence business after reading above article.
Will Have An Orderbook Of Over ₹26,000 Cr For Defence Segment By End Of FY25: L&T | CNBC TV18
This interview states that L&T will have close to 26000 cr order book by next year (13k crore they just won last week).
Now when I see smaller companies like MTAR, they trade at 5x order book so even we give L&T a 4x order book, we are looking at 1 lakh crore and 1.25 lakh crore if we value at 5x order book.
When I started this thread whole company was valued at 1.25 lakh crore
So, defence is 20-25% of total valuation of today. That is pretty large. I am not sure if market is still factoring in that. Looks like that is the disconnect between conservative domestic brokerages which value L&T close to 3200-3400 and some of the global/domestic brokerages which are valuing it at 4200-4400.
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