LARSEN & TOUBRO
Reco price/date: Rs 1,398.65/April 1
Current/target price: Rs 1,422.35/Rs 1,730
In the March quarter till date, Larsen & Toubro (L&T) has announced orders of Rs 11,100 crore. With unannounced fourth-quarter order flow typically close to 35 per cent (here Rs 6,000 crore), Rs 17,000 crore of orders is in place. L&T is on track to achieve 15 per cent year-on-year order inflow growth for FY13E (15-20 per cent guidance). As focus shifts to FY14E outlook in May, current levels build in pessimism and offer a good entry point based on our expectation of 10 per cent year-on-year growth in FY14E, without factoring capex recovery. Maintain Buy
TILAKNAGAR INDUSTRIES
Reco price/date: Rs 60/1 April
Current/target price: Rs 60/Rs 90
Tilaknagar Industries indicated that price hikes are in place in most states. Prices in Kerala are up by 5-12 per cent. With healthy price hikes, analysts expect the company to maintain or expand margins in FY14. Owing to the new quota system in Tamil Nadu, Tilaknagar has lost 70 per cent volumes. Sales of Mansion House brandy are down 23 per cent y-o-y. The company indicated that sales would remain weak for the next 2-3 quarters. It expects low single-digit volume growth in TN over the next two years. Weaker revenues in brandy will continue to hit overall margins by 150-200 bps. Maintain Buy.
Reco price/date: Rs 1,398.65/April 1
Current/target price: Rs 1,422.35/Rs 1,730
In the March quarter till date, Larsen & Toubro (L&T) has announced orders of Rs 11,100 crore. With unannounced fourth-quarter order flow typically close to 35 per cent (here Rs 6,000 crore), Rs 17,000 crore of orders is in place. L&T is on track to achieve 15 per cent year-on-year order inflow growth for FY13E (15-20 per cent guidance). As focus shifts to FY14E outlook in May, current levels build in pessimism and offer a good entry point based on our expectation of 10 per cent year-on-year growth in FY14E, without factoring capex recovery. Maintain Buy
Jefferies
TILAKNAGAR INDUSTRIES
Reco price/date: Rs 60/1 April
Current/target price: Rs 60/Rs 90
Tilaknagar Industries indicated that price hikes are in place in most states. Prices in Kerala are up by 5-12 per cent. With healthy price hikes, analysts expect the company to maintain or expand margins in FY14. Owing to the new quota system in Tamil Nadu, Tilaknagar has lost 70 per cent volumes. Sales of Mansion House brandy are down 23 per cent y-o-y. The company indicated that sales would remain weak for the next 2-3 quarters. It expects low single-digit volume growth in TN over the next two years. Weaker revenues in brandy will continue to hit overall margins by 150-200 bps. Maintain Buy.
Anand Rathi Equities
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