The 36 reports from 13 analysts offering long term price targets
for Larsen & Toubro Ltd. have an average target of 1533.43. The consensus estimate
represents an upside of 9.92%
from the last price of 1395.00.
L&T; makes formal move to acquire Mindtree L&T;, the parent of L&T; Infotech (LTI), has announced its intent to acquire ~66% stake in Mindtree (MTCL) as top shareholder VG Siddhartha looks to monetise his stake. We expect the recent correction in LTI (rated BUY, trading at 17.6x/15.1x FY20E/ FY21E P/E) to reverse as its parent has indicated plans to run MTCL as an independent entity. In our view, distractions at MTCL as the promoters tussle with L&T; over leadership control can impair operating performance, though we don't...
ICICI Securities Ltd | Retail Equity Research Larsen & Toubro (L&T;) has announced a three part all-cash deal to acquire MindTree Ltd. Firstly, L&T; has entered into a definitive share purchase agreement with VG Siddhartha and his related entities viz. Coffee Day Trading and Coffee Day Enterprises to acquire 20.32% in MindTree Ltd at | 980/ share aggregating to | 3269 crore. The offer...
It has earmarked an amount of INR107b for this acquisition, valuing MTCL at INR162b (+5% v/s current market cap of INR155b) or INR980/share. However, the promoters of MTCL (13.3% stake) may look to resist the hostile takeover by engaging with other shareholders, and hence, it could be a long-drawn process, in our view. Moreover, this is better utilization of its strong cash balance, especially in light of the rejection of the INR90b share buyback by the SEBI. Even though LT is still engaged with the SEBI for its planned share buyback, the MTCL acquisition lowers the chances of a buyback now, in our view. MTCLs acquisition raises a few questions on the capital allocation policy, especially given that LT has been on track to meet its RoE guidance of 18% by FY21 and divesting its non-core assets.
Larsen & Toubro (L&T;) Q3 results beat Street estimates. L&T; reported a 24% growth in consolidated net sales in Dec 18 quarter to Rs 35708.87 crore. OPM was up by 30 bps to 11.2% due to lower raw material costs and higher operating...
Larsen & Toubro (L&T;) reported a robust Q3FY19 performance, well above our expectations on the revenue, PAT and order inflow front. Standalone revenues for the quarter grew 26.1% YoY to | 22343 crore (vs. our estimate of | 20116.4 crore). On a consolidated basis, revenues grew 24% to | 35709 crore. On a standalone basis, the infrastructure segment delivered a strong performance with revenue growth of 22.6% to | 17291.8 crore on a YoY basis For Q3FY19, L&T; registered strong order inflows worth | 42233 crore...
25 January 2019 Sales increased 24% YoY to INR357b, ahead of our estimate of INR323b, driven by Hydrocarbon (+22% YoY), Infrastructure (+24% YoY), IT (+29% YoY) and Finance (+20% YoY) segments. EBITDA increased 27% YoY to INR40b was driven by the Others and IT/TS segments. We highlight that (a) Infrastructure segment includes INR4b of provisions relating to time and cost overruns and (b) Others segment had INR5.5b of sales and profit relating to the sale of a commercial tower in 3QFY19. PAT increased 37% YoY to INR20.4b, ahead of our estimate of INR18b. by 37% YoY, driven by Infrastructure (+42% YoY), Heavy Engineering (+72%) and Hydrocarbon (+48% YoY), partly offset by Power (-47% YoY). Overseas E&C; segment grew by 13% YoY, driven by Power (+41% YoY) and Heavy Engineering (+110% YoY). INR4b provision booked for cost and time overruns in projects where claims have been raised but yet to be received, (b) adverse job mix and (c) higher raw material prices on fixed priced contracts.
For Q3FY19, TVS motor's EBITDA margins stood at 8.1%, where revenues Change in Estimates | Target | Reco were higher 27% YoY on the back of strong volume growth of 20% YoY, despite the overall industry demand being tepid on account of higher...
Larsen & Toubro Infotech's (LTI) Q3FY19 revenue growth of 6.1% QoQ in CC beats our forecast. Further, EBIT margin of 19.1%, +20bps QoQ and EPS of Rs21.7, -6.4%/+31% QoQ/YoY was a beat to our forecast. Digital solutions (37% of revenue) saw another quarter of strong growth +5.6%/+32.5% QoQ/YoY in US$. LTI now has 63 Fortune 500 clients, 2 added in Q3FY19. We factor Q3 result and raise FY19/20E EPS by 2.4%/1.9%. We now forecast FY18-20E revenue (US$)/EPS CAGR of 17.2%/22%. We increase our TP to Rs1,925 (vs. Rs1,889)...
Digital adoption is still at a very early stage, and majority of the clients are less than half-way through their Digital journey. While Digital capabilities are imperative, LTI also shared its differentiated proposition with which it approaches the legacy spending of clients. It is transforming the 'lights-on' services by driving end business outcomes. An example here is rethinking the role of a support engineer as a productivity engineer.
Larsen & Toubro (L&T;) Q1 profit beats estimates Larsen & Toubro recorded Consolidated Gross Revenue of Rs.32,081 crore for the quarter ended September 30, 2018, registering a growth of 21% on a y-o-y basis. Growth was facilitated with improved execution in project businesses, strong growth in service businesses and recognition of revenue on completed performances in Realty business on application of IND AS 115 from 1stApril, 2018. International revenue during the quarter at Rs.10, 630 crore constituted 33% of the total revenue marginally lower than36% in the previous year. For the period April-September 2018, the Consolidated Gross revenue at Rs.60,364 crore...
Larsen & Toubro (L&T;) reported a stellar Q2FY19 performance, which was better-than-expected on revenue, PAT and order inflow front Standalone revenues for the quarter grew 18% YoY to | 18648.8 crore well above our estimate of | 17180.9 crore. On a consolidated basis, revenues grew 21.3% to | 32080.8 crore YoY. On a standalone basis, infrastructure segment delivered a strong performance with revenue growth of 23.2% to | 14345.4 crore on a YoY basis. Heavy engineering segment revenue grew 53.8% to | 544.1 crore on a YoY...
Strong execution on all front: NIIT Tech delivered strong result for 2QFY19 with Change in Estimates | Target | Reco beat on revenue, EBIDTA margin and PAT. Revenues at USD132.5mn were up...
Historically, government orders have slowed in the quarter preceding/during the election quarter (See Exhibit 9) as the election code of conduct sets in. We now build in an 11% decline in 2H19 orders driven slowdown in ordering in 4Q19 as the election code of conduct sets in. We build in E&C; revenue growth of 14% for FY19 supported by an equivalent pace of domestic execution. For FY19, we expect revenue growth of 12% (12-14% guidance) driven by a revival in execution of large domestic orders that LT has bagged over the past two years. We build in domestic E&C; growth of 14%/15% for FY19/20; note 1Q20 could see a slowdown due to general elections as has been the case historically (See Exhibit 15). price target of INR1,540 (E&C; business at 22x FY20E EPS, to which we add INR520 for subsidiaries). LT trades attractively at 19x/15x standalone EPS for FY19/20 (ex-subsidiaries).
Larsen & Toubro Limited (L&T;) is a USD 18 billion technology, engineering, construction, projects, manufacturing and financial services conglomerate, with global operations. It addresses critical needs in key sectors infrastructure, construction, defence, hydrocarbon, heavy engineering, power, shipbuilding, aerospace, electrical & automation, mining and metallurgy. It operates in over 30 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T; to attain and sustain leadership in its major lines of business for over seven decades. Financials - For the period of FY14-18, its topline and bottomline grew at a CAGR of ~9% & 15% respectively. In Q1FY19 L&T;'s consolidated net sales grew by ~18% to Rs. 28,283 crore and its operating profit was higher by ~25% to Rs. 4,812 crore. Its Net Profit for the quarter increased by ~36% to Rs. 1,215 crore from Rs. 893 crore as compared to the same quarter previous year....
Larsen & Toubro (L&T;) announced a share buyback of up to 6 crore equity shares i.e. 4.29% of total paid up equity share capital at a maximum price of | 1500/ share for aggregate amount of | 9000 crore, which is at ~13% premium to market price. According to L&T;'s five-year strategic plan to exit non-core businesses, have asset light model and improve RoE to 18% by FY21, L&T; accumulated cash & liquid investments by selling noncore assets in past two to three years at ~| 16300 crore as on FY18. The share buyback proposal is in line with long term objective of improving RoE. L&T;'s networth, PAT are estimated at | 63280 crore (prebuyback), | 8240 crore, respectively for FY19E. After adjusting for share...
23 August 2018 In a press release to the stock exchanges, L&T; has informed that its Board of Directors have approved a buyback of equity shares of the company. L&Ts; board of directors have approved a proposal to buy back up to 60m shares (4.29% of the total paid-up equity share capital, 18% of standalone net worth) at a maximum price of INR1, 500 per share for an amount of INR90b. We believe that L&T; is comfortably placed to fund its buyback program, given a) its healthy cash balance of INR80b (Consolidated level), b) recent sale of its stake (5.5%) in L&T; Technology Services generating cash of INR7.9b, and c) current investment of INR128b as of March 2018 available with the company. Assuming the completion of the INR90b share buyback, L&Ts; earnings growth for FY19 would be impacted by 500bps at the consolidated level (from existing estimate of 15% to 10% for FY19), given loss in other income on account of utilization of INR90b of cash.
Our conversations with the L&T; Technology Services' (LTTS) management indicate ramp-up in the recent deal wins are on track and deal pipeline is healthy. It hasn't seen any impact so far of the on-going global trade conflicts on the clients' R&D; spend and has been getting billingrate hikes selectively in contract renewals. This should help offset the margin impact of annual wage revision in 2QFY19; a 2% QTD INR depreciation is an additional lever. We believe our current 21% FY19 USD revenue growth forecast should be achievable and there...
