L&T shares fall despite good results! Investors will get strong returns in long term, know what is the opinion of brokerage

 

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Stock to Buy: Due to the results, strong stock action is being seen in the stock market these days. In this, selected stock markets have fallen as soon as they open, but are ready for a strong rise in the long term. One such share is that of Lorson & Turbo, which has presented strong results in the September quarter. Global brokerage firms Jefferies, Goldman Sachs, Citi and CLSA have given bullish ratings on the stock. According to the brokerage report after Q2 results, the stock can give returns of more than 23 percent in the long term.

 Brokerage strategy on L&T shares

Brokerage firm CLSA has maintained its buy opinion on L&T. Also, an upside target of Rs 3600 has been given on the share. The brokerage said that due to increase in order inflow and capital returns, ROE has crossed 15 percent. Morgan Stanley has also maintained its overweight rating on the stock. A target of Rs 2935 has been given on the share. The share had closed on BSE on October 31 at a price of Rs 2929.

 Impact of huge order book will be visible

 Jefferies has given a target of Rs 3400 while maintaining the buy opinion on the stock, which was earlier Rs 3050. A positive growth of 72% has been seen in order flow on annual basis. Management said that order flow and earnings in FY24 should be better than estimates. However, the margin has been reduced from 9% to 8.5-9%. Citi has given a Buy rating on the stock. Also, an upside target of Rs 3550 has been given. Goldman Sachs has also advised to buy shares and has given a target of Rs 3160.

L&T Q2 FY24  (Conso, YoY)

 REVENUE 51024.04 cr VS 42762.61 Cr UP 19.3% (Est 51074 cr)

 EBITDA 5631.99 Cr VS 4893.44 Cr UP 15.1%  ( EST 5500 Cr)

 MARGIN 11.04 % VS 11.44 % (EST 11%)

 L&T Chip Design Center

 L&T's CFO told in the conference that the company will open a chip design center in India. Under this, the company has approved investment of up to Rs 830 crore in semiconductor chip business. The board has also approved the formation of a subsidiary to open a chip design center in India.