Karvy Stock Broking Limited has maintained ‘Buy’ rating on Larsen & Toubro (L&T) stock with an intraday target of Rs 2900.

According to Karvy, day traders can purchase the stock above Rs 2810 with a strict stop loss of Rs 2750. If the stock market remains on positive track, the next target for the day will be above Rs 2905.

Shares of the company, on Wednesday (July 23), closed at Rs 2766.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 874968. Current EPS and PE Ratio stood at 74.33 and 35.77 respectively. The share price has seen a 52-week high of Rs 4,670 and a low of Rs 2,100 on BSE.

The outlook for the stock is really very strong. Moreover, L&T is making robust efforts in order to strengthen its market share, swell its business, regulates its asset quality and put more pressure on customer service to perk up its profile and fight increasing competition.
 
On July 16, a consortium of Larsen and Toubro (L&T) with Malaysian company Scomi and another consisting of Reliance Infrastructure with Japanese firm Hitachi have submitted their financial and technical bids to build India’s first monorail corridor in Mumbai.

The two consortia have submitted their bids to the Mumbai Metropolitan Region Development Authority (MMRDA). The monorail corridor is likely to be completed by 2011.

Larsen & Toubro (L&T) has decided to set up a Rs 20 billion forging venture with Nuclear Power Corporation of India (NPCIL). NPCIL is making discussions with L&T for the last few months for setting up a new venture.

The company has also pocketed a Rs 10.48 billion order from the Indian Railways for establishing a cast steel wheel construction facility in Saran (Chhapra) District of Bihar.

Moreover, L&T secured a contract worth Rs 4.46 billion from JSW Power Transco for evacuation of power from the 1200 MW power project set up by JSW Energy at Ratnagiri in Maharashtra.

It has decided to split its Engineering Construction and Contracts Division, which has seen sharp jump in business in recent years, to augment efficiency in managing growth.

Larsen & Toubro (L&T) is making discussion with a cluster of banking institutions to lift more than Rs 170 billion as debt to finance its proposed entry into power generation segment.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Reliance, Grasim, Century and Voltas.