L&T is seeing gradual but regular improvement in biz prospects: Analysts

Analysts say improving engineering and construction business, asset monetisation, and better return ratio will provide triggers

The lockdown-related disruption has significantly affected investor sentiment towards Larsen & Toubro (L&T). The concerns over labour availability, project execution, and new order flows meant that the stock continued underperforming.

But, analysts now feel concerns are overdone and L&T is seeing gradual but regular improvement in business prospects. The project execution is picking up with improved labour availability. Though the September quarter will be soft on a year-on-year (YoY) basis, it shall be much better sequentially and the second-half performance will improve significantly, say analysts. L&T is among the top picks of Credit Suisse and Jefferies, who say prudent capital allocation,