Nomura downgrades L&T to reduce, shares fall

Nomura downgrades Larsen & Toubro to 'reduce' from 'buy', nearly halves target price to Rs 992 from Rs 1,691.

L&T management's guidance for 15-20% order intake in FY13 seems an "extremely challenging task", said note.

No respite likely from declines in order inflow in the medium term on corporate capex downswing and policy paralysis, it added.

Nomura said worsening macro conditions, disappointment on order inflow guidance and margin squeeze will be key triggers for stock's de-rating.

L&T shares were last down 1.5% at Rs 1,188.20.