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Larsen & Toubro hits five-month high

The stock moved higher by 2% to Rs 1,321, extending its previous day's nearly 3% gain on the BSE.

Larsen & Toubro (l&t)

SI Reporter  |  Mumbai 

Larsen & Toubro hits five-month high

was up 2% at Rs 1,321 extending its previous day’s nearly 3% gain on the BSE. The stock is currently trading at its highest level since December 2015.

The capital goods major on Tuesday announced that a meeting of the board of directors of the company will be held on May 25, 2016, to consider and approve the audited financial results of the Company for the year ended March 31, 2016 and to recommend dividend, if any.

HDFC Securities expects, improved execution to lead to 16% revenue growth for the company in March quarter (Q4F16). The brokerage house expects around 250 basis points (bps) sequential margin improvement as orders reaching margin recognition threshold were lower till Q3FY16.

Prabhudas Lilladher expects sales growth of 13% year on year (YoY) at Rs 31,700 crore, driven by infrastructure/services businesses.

“We expect engineering & construction business to grow by 8% and services business to grow by around 17%. L&T has guided for core flat margin YoY (10%); to achieve the same, it requires infrastructure segment EBITDA to improve by around 400 bps quarter on quarter,” the brokerage house said in results preview.

In past one-month, the stock has outperformed the market by gaining 11% from Rs 1,191 after L&T refiled the draft red herring prospectus for its IT business , L&T Infotech, with the Securities and Exchange Board of India. The S&P BSE Sensex up 4.4% during the same period.

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First Published: Tue, May 10 2016. 15:26 IST