L&T up on buzz of possible tie up with toshiba
Larsen & Toubro surged 3.16% to Rs 1427.50, after reports that the company was talking with Japan's Toshiba for a power plants & equipment joint venture.
At the current market price of Rs 1427.50, L&T trades 42.48 times its FY-2006 EPS of Rs 33.60.Post-Budget 2007-08, L&T is seen benefiting from the government’s thrust on infrastructure creation. The Budget document also offers a strong push to infrastructure, with increased outlays for several flagship programmes such as Bharat Nirman, Accelerated Irrigation Benefit Programme (AIPB), Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and National Highway Development Programme.
Looking at the valuations of L&T ,the stock is trading 40 times it estimated FY-07 EPS of Rs 35. The valuation seems a bit stretched and the stock is trading above its maximum PE.So Reapreturns recommends a sell on the stock and book partial profits.
At the current market price of Rs 1427.50, L&T trades 42.48 times its FY-2006 EPS of Rs 33.60.Post-Budget 2007-08, L&T is seen benefiting from the government’s thrust on infrastructure creation. The Budget document also offers a strong push to infrastructure, with increased outlays for several flagship programmes such as Bharat Nirman, Accelerated Irrigation Benefit Programme (AIPB), Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and National Highway Development Programme.
Looking at the valuations of L&T ,the stock is trading 40 times it estimated FY-07 EPS of Rs 35. The valuation seems a bit stretched and the stock is trading above its maximum PE.So Reapreturns recommends a sell on the stock and book partial profits.
Labels: Larsen and toubro
posted by SY at 5:22 PM
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