L&T gains as analysts see 20% upside on likely strong order inflows, Schneider deal

Credit Suisse said L&T order inflows could touch almost Rs 2 lakh crore in FY19, ahead of company's Rs 1.7 lakh crore guidance.

Larsen & Toubro shares gained a percent intraday on April 24 after brokerages remained positive on the stock. They expect more than 20 percent upside on likely strong inflow in FY19 and Schneider deal.

The stock was quoting at Rs 1,355.00, up Rs 6.95, or 0.52 percent on the BSE, at 1138 hours IST.

Credit Suisse has maintained its outperform call on the stock with a price target at Rs 1,700 (implying a 26 percent potential upside) on the back of strong momentum from its core business. Water & hydrocarbons remain key sectors, it said.

It feels order inflows could touch almost Rs 2 lakh crore in FY19, ahead of company's Rs 1.7 lakh crore guidance.

"States remain key which constitute 42 percent of EPC orders and the company has about Rs 5,000 crore of orders from Smart City/IT infra projects," the brokerage said, adding order inflows have been boosted by five large orders.

Japanese brokerage Nomura also has a buy call on L&T with a target at Rs 1,670 apiece (implying a 24 percent potential upside) as Competition Commission of India approval for the proposed electrical & automation business deal with Schneider is big positive.

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