Karvy Stock Broking Limited has maintained ‘buy’ rating on Larsen and Toubro Limited (L&T) stock with an intraday target of Rs 2660.

According to Karvy, interested traders can purchase the stock above Rs 2615 with a strict stop loss of Rs 2590. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 2667.
 
Shares of the company, on Monday (Aug 25), closed at Rs 2604.70 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 327182. Current EPS and P/E ratio stood at 78.62 and 32.82 respectively. The share price has seen a 52-week high of Rs 4670 and a low of Rs 2100 on BSE.

The stock has great potential, and it showed good improvement in last few trading sessions. It will achieve the target price as the company has robust growth plans and strong operating capabilities.

As a part of ``Project Ujjwal``, Larsen & Toubro has established a science lab at Milind Viyalay, Mumbai.

Around 2,000 pupils of the school would be capable of using the science lab.

Moreover, the company is likely to get hold of equity stake in coal mines in Australia and Indonesia to swell its focus on the power segment. despite tying up with Mitsubishi Heavy Industries for making super-critical boilers, turbines and generators, the company has also decided to establish power plants on its own, including bidding for ultra-mega power projects, or pick up equity stake in projects being set up by others.

In the next two years, L&T is planning to have 4,000-6,000 MW of power plants under development.

Larsen & Toubro (L&T) eyes 25% revenue from its international business by the next few years from the current 16% in fiscal year 2008.

L&T`s focus fields would include the Middle-East and China considering the flourishing infrastructure market there. The company has laid a greater emphasis 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

L&T in consortium with global technology partners has secured EPC orders aggregating worth Rs 38.16 billion from the Steel and Zinc Industry.

For the three months period ended in June 2008, L&T registered a 33.33% growth in net profits to Rs 5024.40 million. Net sales rose 53.19% to Rs 69014.30 million for the quarter ended June 2008 from Rs 45052.10 million for the quarter ended June 2007.

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