Reuters Market Eye - Citigroup downgrades Larsen & Toubro Ltd to "neutral" from "buy", citing "rich" valuations and says Q1 "raises multiple red flags," including lower-than-expected standalone sales and margin details.
Earnings "were a warning that investors/analysts need to curb their enthusiasm," the bank adds.
Deustche Bank also downgrades L&T, to "hold" from "buy", citing concerns about valuations and says large order wins are in the low-margin hydrocarbons sector.
L&T falls as much as 7.9 percent, heads for biggest fall since July 2009.
(Reporting by Manoj Rawal)
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