As per views of stock market analysts, day traders can purchase Larsen & Toubro (L&T) stock on declines to achieve an intraday target of Rs 2,855.

If the stock market remains positive, the next target for the day will be above Rs 2,857. The stop loss marked for the suggested stock is Rs 2,848.

Shares of the company, on Tuesday (June 3), closed at Rs 2,849.10 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 349654. The share price also touched a high of Rs 2,890 and Rs 2,802 during the day. The share price has seen a 52-week high of Rs 4,670 and a low of Rs 1,863.35 on BSE.

The stock has great potential. It can still exhibit superb surge. The long term traders are recommended to hold the stock.

Today, Larsen & Toubro (L&T) outbid BHEL for supply of main power equipment for a proposed 1,600 mw power project in Andhra Pradesh.

The project being developed by Andhra Pradesh Generation Corporation (APGenco) at Krishnapatnam would be the first project in the country based on 800 mw supercritical thermal generation sets. The total cost of the project is about Rs 80 billion.

Besides, L&T has decided to invest Rs 2,500 crore during the existing fiscal (2008-09) in order to strengthen capacities at its growth centres.

The money will be spent in augmenting the existing facilities across all locations and for establishing a ship-building yard in Tamil Nadu.

For ship-building, the company has earmarked about Rs 3,000 crore for the next few years.

The company registered a turnover of Rs 29,600 crore during the last fiscal (2007-08), and this year it anticipates a growth of 30% in sales.

The company’s joint venture (JV) with Japan’s Mitsubishi Heavy Industries for making boilers and turbine generators would be operational within the next 12-18 months.

L&T holds the majority stake of 51% in the joint venture, while Mitsubishi control the remaining 49%.

The company is also the process of concluding deals with two realty developers to undertake construction projects.

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