Buy Larsen and Toubro; target of Rs 4450: Emkay Global Financial

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Strong order backlog of Rs8.5trn, providing visibility for future growth.
  • Government thrust on infrastructure development, driving demand for L&T's services.
  • Diversified portfolio with presence in multiple sectors, reducing dependence on any one segment.
  • Improving working capital cycle, with NWC at 1.7% of total sales.

Thesis Validation Checklist

  • Order inflow growth and order backlog expansion.
  • Margin improvement, driven by cost discipline and favorable revenue mix.
  • Progress on infrastructure development projects, driving demand for L&T's services.
  • Management's ability to execute on its growth plans and achieve guidance.