L&T - Q2FY21 - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

Larsen & Toubro recorded consolidated revenues of ₹31,035 crore for the quarter ended September 30, 2020 declining by 12% YoY was below street expectation. During the quarter, with the labour at various project sites reaching near pre-covid levels, the businesses saw a pickup in execution momentum compared to Q1 FY 2020-21 and achieved a sequential growth of 46%. Net Profit After Tax (PAT) and share in profit / (loss) of joint ventures / associates from continuing operations before exceptional items for the quarter is at ₹1,410 crore was above street expectation, registering a sequential improvement of nearly 4 times reflecting pickup in the business momentum. However, it declined by 45% vis-à-vis reported PAT of corresponding quarter of the previous year at ₹2,552 crore.

Overall, numbers were in line with street expectations. The Board of Directors of the Company has approved a special dividend of ₹18/- was below expectation. We are bullish on the Company as the economy is recovering from the impact of Covid-19 and stock is trading at significant discount compared to historical average valuations and offers favorable risk reward from current levels.

Shares of LARSEN & TOUBRO LTD. was last trading in BSE at Rs.934.6 as compared to the previous close of Rs. 983.65. The total number of shares traded during the day was 526381 in over 29196 trades.

The stock hit an intraday high of Rs. 958.95 and intraday low of 927. The net turnover during the day was Rs. 494800802.

Source : Equity Bulls

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