Current slowdown could be temporary, multiple long-term triggers in L&T

Q4 is expected to be soft and any corrections could offer a good entry in the stock

India’s premier engineering outfit, Larsen & Toubro (L&T) is a proxy play on both the infrastructure and the capital goods industry. It singlehandedly generates around 50 per cent of total revenues in some of these sectors. It also owns stakes in listed group companies, which are players in digital technology and finance. It has a finger in almost every engineering pie as well as significant overseas exposure to projects.

A preview of the likely Q4 performance suggests that the results will be on the disappointing side. Order inflow was low, suggesting the full-year guidance for the order book is unlikely