Stock market analyst Hitendra Vasudeo of stockmechanics.com has maintained ‘buy’ rating on Larsen & Toubro stock with an intraday target of Rs 2735.

According to Mr. Vasudeo, interested traders can purchase the stock above Rs 2715 with a strict stop loss of Rs 2695. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 2747.4.
 
Shares of the company, on Tuesday (Aug 19), closed at Rs 2674.45 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 340810. Current EPS & P/E ratio stood at 78.62 and 34.52 respectively. The share price has seen a 52-week high of Rs 4670 and a low of Rs 2100 on BSE.

L&T has been showing superb surge during the last few days. The company is making cautious efforts to swell its market share, expand its business, influences its asset quality and put more pressure on client service to amend its profile and fight increasing rivalry.

L&T is eyeing 25% income from its international business by the next few years from the current 16% in financial year 2008.

The company’s focus areas would constitute the Middle-East and China considering the flourishing infrastructure market there. The company put more pressure on quickened growth in the Gulf Cooperative Council (GCC) countries.

The company has set up a high-tech fabrication facility for making modular structures, heavy jackets and off-shore oil and gas platforms at Sohar in Oman.

The company has also established design engineering centres at Sharjah and Abu Dhabi for offering up design and engineering consultancy services in the oil and gas and infrastructure sectors.

On August 12, L&T together with global technology partners pocketed EPC orders worth Rs 38.16 billion from the Steel and Zinc Industry.

L&T in association with Outotec, GmbH of Germany for Pellet plant and Paul Wurth, Italia for blast furnace has received EPC orders worth Rs 25.45 billion from Tata Steel for six MITPA Pellet plant and 3800 CuM blast furnace at Jamshedpur.

Moreover, the company has posted a substantial increase in its standalone net profit for the three months period ended June 2008.

The company net profit for the quarter under review climbed 33.33% to Rs 5,024.40 million, whereas the EPS stood at Rs 17.19 (a share).

Net sales for the quarter zoomed 53.19% to Rs 69,014.30 million and the total income for the quarter jumped 50.60% to Rs 71,032.60 million.

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