LARSEN AND TOUBRO
Reco price/date: Rs 1,375/July 24
Current/target price: Rs 1,341/Rs 1,265
Larsen and Toubro (L&T) reported a strong Q1FY13 with a revenue growth of 26 per cent and a subdued overall margin, hit primarily by MTM losses and change in job mix. Order inflow for the quarter was robust at Rs 19,600 crore aided by deferred orders to the tune of Rs 3,800 crore. Change of mix in favour of infra segment from high-margin, large-ticket hydro-carbon, power & process segments is likely to be margin-dilutive. Maintain Sell.
ICICI Securities
JAIPRAKASH POWER VENTURES
Reco /date: Rs 34/July 23;
Current/target: Rs 32/Rs 43
Jaiprakash Power Ventures’ Q1FY13 pretax profit was up 135 per cent and marginally ahead of analysts’ estimates. The net profit, though higher, was led by lower taxes in this quarter. Revenue growth of 98 per cent year-on-year was driven by contribution from complete commissioning of Karcham Wangtoo. Management highlighted that generation would have been higher-than-reported numbers by 30 per cent had the monsoons been on track. Karcham Wangtoo (one Gw) generated 1.3 billion units in June quarter and will continue to sell power at merchant rates till the PPA dispute with PTC is resolved. Maintain Overweight.
Barclays Equity Research
