Larsen & Toubro (L&T) is the leading private sector player in the Indian Engineering/Capital Goods segment with a current Market Cap of above Rs 100000 crores. The Company has a premier standing as a Heavy Engineering Rquipment manufacturer in all the segments of the Engineering space be it Thermal, hydro as well as Nuclear.
Currently the scrip is trading at Rs 1792 at a PE multiple of 27 on TTM basis which is at a substantial premium to BHEL. However the valuation gap between L&T and BHEL is somewhat overstated currently since BHEL has seen a sharp downmove in the past 5 months due to the impending FPO factor. The 52 wk high is Rs 2212 and the 52 week low at Rs 1463.
Technically the 200 DMA ia at 1776 and the 50 DMA at 1694. The scrip has seen an upmove of about 9% in the last month after better than expected Q4 FY 10-11 results.
L&T has rarely broken 1500 intraday in the last 6 months and presents a good investment buying opportunity on all dips and in particular at levels of 1750 or lower.
sir
ReplyDeletewhat is your opinion about investing in alok ind,kajaria ceramics,tvs motors and cipla for long term?
Dear friend, in my opinion, as a long term investment Alok Industries does not fit the Bill since it is more of s Trading Stock and hence High Beta prone to extreme volatility. If one really wants to have exposure to the Textile Space it is far better to look at a Branded high Margin player like S Kumars (the only caveat being that one would have to get a good entry price since S Kumars too is a volatile Scrip). Kajaria, TVS Motors and Cipla are far more promising from long term investment view point and I shall discuss them in greater detail shortly in ensuing posts. Please keep track. Regards.
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