L&T hits 52-week high

Since November 13, the stock has rallied 25% compared to 5.6% rise in benchmark S&P BSE Sensex.

Larsen and Toubro (L&T) has rallied 5% to Rs 1,152, also its 52-week high in early morning deals on the Bombay Stock Exchange (BSE).

Shares of construction and engineering major have outperformed the market by gaining 25% since November 13, compared to 5.6% rise in benchmark S&P BSE Sensex.

Analyst at Prabhudas Lilladher in report dated November 20, has maintain ‘Accumulate’ rating on the stock as the management believes execution should pick-up in H2FY14 (October-March) since lot of orders were received in H2FY13 and are likely to pick-up in execution.

With expectation already running low on L&T meeting its guidance, scope for disappointment is low. Asset monetization in IDPL could be an additional trigger, added report.

Meanwhile, L&T has received fresh orders over Rs 5,000 crore since November, according to regulatory filings.

With a giant order book, L&T is well placed to weather growth-related short-term pains in the domestic economy (by timely diversification in overseas geographies) and is best placed in the capital goods space to catch the capex boom as and when it happens, says analyst at ICICI Securities in a note.