Larsen & Toubro (L & T) The price of the action increased more than 4 percent and was the main winner in the intraday trade on August 27, since the Motilal Oswal Corridor house maintained a “buy” rating in the Stock.
Motilal Oswal increased the target price to RS 1,950, an advantage of more than 22 percent.
The E & C Core E & C business is still better placed to benefit from any CAPEX UPCYCLE, backed by its more teal asset business model and diversified segments, the brokerage house said.
“If the macro improves, the strong generation of the FCF should allow L & T to increase dividend payments, since there are hardly any CAPEX requirement beyond the maintenance capex,” said the breeding firm.
L & T’s ability to earn large-sized projects, such as airports and high-speed rail (HSR), has been remarkable and compensated for its departure from the road sector, he added.
The stock is the best selection in the wider capital goods sector as a proxy to play the history of Capex of India, said Motilal Oswal.
At 1226 hours, Larsen & Toubro was quoting RS 1,660.65, UP RS 65.40, or 4.10 percent, at BSE.
Participation played a maximum of 52 weeks from RS 1,676.70 on August 16, 2021 and a minimum of 52 weeks of RS 842.50 on September 24, 2020. It is marketing 0.96 percent below its 52 weeks high and 97.11 percent above its 52 weeks. low.