L&T: Healthy pace of project execution, cost initiatives may drive profits

The recent stock price correction offers a good entry point for investors

Larsen and Toubro (L&T) remains in news on account of regular order inflows. Rising order flows, healthy project execution, cost-cutting initiatives and improving capital allocation are keeping analysts positive on L&T. The recent stock price correction, they add, offers a good entry point for investors.

With order inflow of Rs 49.2 billion in the construction as well as power transmission and distribution segments since the start of October, L&T is maintaining momentum witnessed since the start of FY19.

The June quarter saw a 37 per cent year-on-year (YoY) jump in new orders, and analysts peg September quarter growth at 86