Larsen and Tubro Q2 FY 2011 - 2012 Result Analysis



Larsen & Tubro (L&T), India's largest Engineering company, reported 15% growth in Net Profit at Rs. 798 crores for the second quarter of current fiscal vs. the second quarter of last fiscal. Revenues went up 20% to 11,375 crores YoY.  
EBITDA margin stood at 10.44% versus 10.78%.The company has given a revenue guidance of 20-25% for the current quarter.


The order inflow of Rs 18,096 crore during the quarter took the company’s order book to Rs 1,42,185 crore. L&T revised order inflow guidance to 5% from 15%.

Valuation

For the fiscal year FY 2012 the company is expected to post an EPS of approximately Rs. 52. At the current market price of Rs. 1336 the stock is trading at a PE multiple of over 25 times which is on the expensive side considering the economic challenges & uncertainties, high interest rates and slowdown in investment cycle globally.

52 week high low for the stock is 2212 / 1303. The stock is very near to its 52 week low and might make fresh low in coming weeks.



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