L&T hits four month high

The stock has rallied 19% post Q2 earnings compared to 2.4% rise in benchmark index.

Larsen and Toubro (L&T) is trading higher by 2% at Rs 995, its highest level since July this year on the Bombay Stock Exchange (BSE).

Shares of construction and engineering major has outperformed the market by gaining 19% since July-September (Q2) quarter earnings on October 18, compared to 2.4% rise in benchmark S&P BSE Sensex.

L&T has maintained its guidance of 20% growth in order inflows over FY13. The management reiterated its expectations of sizeable international orders (from the Middle East) as well as a steady flow in its domestic business, from government enterprises.

Meanwhile, L&T has received fresh orders worth of Rs 7,640 crore in past one and half months, 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.