L&T: At the Business Crossroads

Dear Investors,
Continuing with the theme of Investor Rewards Fortnight, JainMatrix Investments is proud to present its fifth reward Report, L&T: At the Business Crossroads. The entire report is published here, for the first time in public, for your benefit.
Readers may note that the share has appreciated by 65% since my Buy call 17 months ago. Another good pick from JainMatrix Investments.

Click on LINK below to see this research report.

Happy Investing,
Punit Jain

JainMatrix Investments

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  • Date: 22-Jan-13               
  • CMP: 1033 (adjusted for July 2013 bonus)
  • Large Cap – Mkt Cap 96,000 crores
  • Advice: Invest for the long term

JainMatrix Investments presents investors the complete report on Larsen & Toubro Ltd as part of the Investor Rewards Fortnight. 

Summary

L&T is a buy at these levels. The key positives are:

  • Diversified across a business verticals like Construction, Roads, Oil & Gas, Power, Fertilizer, Ship Building, Water, Railways, IT and Finance, & a big international presence.
  • Management has a reputation for excellence and professionalism.
  • Good growth with Revenues, EBITDA and PAT gaining 22%, 31% and 20% CAGR over 5 years.
  • Valuation is below historical averages. The share is 32% below highs from 5 years ago.

The negatives are

  • Expected share performance is dependent on domestic economic and investment recovery.
  • Early signs of stress in the balance sheet due to high…

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