LARSEN & TOUBRO LTD.Panjang
L&T 2 targets 1 month time frame Lets Develop with Growth
Financial Performance
Revenue Growth: For FY 2023-24, L&T reported a revenue of ₹1,85,000 crore, marking a 15% year-over-year increase.
Profitability: The company achieved an EBITDA of ₹25,000 crore (+18% YoY) and a net profit of ₹12,500 crore (+20% YoY), with an operating margin of 13.5%.
Return on Equity (RoE): L&T's RoE stands at 16.8%, indicating efficient capital utilization.
Valuation Metrics: L&T trades at a P/E ratio of 22x (FY25E), which is below its historical average, suggesting potential for price appreciation.
Trade Setup and Exit Strategy
Current Market Position
Current Market Price: ₹3,440 (as of January 29, 2025)
Target Price: ₹4,100 (19% upside potential)
Trade Setup
Entry Point: If not already invested, consider entering at or below the current market price of ₹3,440, given the potential upside and strong fundamentals.
Stop-Loss: Set a stop-loss at around ₹3,200 to limit downside risk, considering the bear case scenario outlined in the report.
Exit Strategy
Target Exit: Aim to exit at or near the target price of ₹4,100 by the end of February, assuming the stock reaches this level.
Monitoring: Regularly monitor market conditions, company announcements, and sector developments that could impact L&T's stock price.
Adjustments: Be prepared to adjust the exit strategy based on market volatility, macroeconomic factors, or significant news affecting L&T or the broader market.
Revenue Growth: For FY 2023-24, L&T reported a revenue of ₹1,85,000 crore, marking a 15% year-over-year increase.
Profitability: The company achieved an EBITDA of ₹25,000 crore (+18% YoY) and a net profit of ₹12,500 crore (+20% YoY), with an operating margin of 13.5%.
Return on Equity (RoE): L&T's RoE stands at 16.8%, indicating efficient capital utilization.
Valuation Metrics: L&T trades at a P/E ratio of 22x (FY25E), which is below its historical average, suggesting potential for price appreciation.
Trade Setup and Exit Strategy
Current Market Position
Current Market Price: ₹3,440 (as of January 29, 2025)
Target Price: ₹4,100 (19% upside potential)
Trade Setup
Entry Point: If not already invested, consider entering at or below the current market price of ₹3,440, given the potential upside and strong fundamentals.
Stop-Loss: Set a stop-loss at around ₹3,200 to limit downside risk, considering the bear case scenario outlined in the report.
Exit Strategy
Target Exit: Aim to exit at or near the target price of ₹4,100 by the end of February, assuming the stock reaches this level.
Monitoring: Regularly monitor market conditions, company announcements, and sector developments that could impact L&T's stock price.
Adjustments: Be prepared to adjust the exit strategy based on market volatility, macroeconomic factors, or significant news affecting L&T or the broader market.
Penafian
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