CLSA raises L&T to 'outperform' on rate cuts, govt policy

Upgrade comes despite 'a mixed bag' from October-December earnings

CLSA upgraded Larsen & Toubro to "outperform" from "underperform", citing favourable policies from the government and expected interest cuts would be reflected in the company's earnings by the second half of fiscal 2013/14.

The upgrade came despite what the brokerage called "a mixed bag" from October-December earnings reported on Thursday, although with "more positives than negatives," including "a creditable job" in orderbook growth but "weak" operating performance.