Decent upside in L&T stock; analyst recommendations strongly positive

Infrastructure and engineering giant, Larsen & Toubro (L&T), reported encouraging results in the first quarter of the 2022-23 financial year (Q1FY23) and strong order-flows going forward. A change in the commodity cycle could cut costs and lead to better Ebitda margins going forward though the company also has significant exposure to higher interest rates.

Core revenues were at Rs 35,850 crore, up 22 per cent year-on-year (YoY) and down 32 per cent quarter-on-quarter (QoQ). Ebitda was at Rs 3,956 crore, up 25 per cent YoY and down 39 per cent QoQ. Cost of finance was at Rs 756 crore, up 7