One of the leading brokerage houses in the country, Prabhudas Lilladher has recently labelled the accumulate tag on the stock of Larsen & Toubro giving it a fresh target of Rs. 2100. According to the research report issued by the company, L&T has already reported a healthy growth in the year so far and the numbers are expected to get better in the coming times.

The report of the company further said that as L&T has been able to clock a 17.7% YoY and 18.2% QoQ growth in net sales from its core business at Rs 92.6 billion in Q2FY11, which was above the expectations of many.

It may be noted here that the financials of the company are healthy and sound as its EBITDA margins, without other operating income (OOI), stood at 10.1% (12.9bps improvement YoY).

The report further said that as core business of the company has a lot of value to be banked upon, the broking house will maintain its accumulate rating on the stock with a target of Rs. 2100 in mind.

For the record, the current level of debt in the company stands at close to Rs 77 billion and support to subsidiaries in H1FY11 stood at Rs 11.5 billion.