L&T is an Indian multinational technology, construction, engineering, manufacturing and financial service conglomerate and is ranked 21 in Largecap segment. It is one of the most respected companies in India having global presence and maintains a leadership in all its major lines of business.

As of today, it is trading at Rs.920.90/- with a 52 W low of Rs.661/- and 52 W high of Rs. 1551/-.

Due to COVID-19, every sector has been impacted and so is the case with L&T. Currently, it’s price is less than its intrinsic value and hence can be bought even at this level as its not in the overbought zone.

However, considering the Q1 results of the company, it is likely to further fall and to know the best levels to buy on dips, you must read this article till the end so that you can take a wise call of your own.

There are many more reasons which will be considered before investing in this Large cap company:-

  1. Large Market capitalization – The company has a large market cap of Rs.129,300.66 Cr. which will help company to survive even in crisis and pledged promoter holding is insignificant.
  2. High EPS ( Earning per share) – The company has a high EPS(TTM) of almost Rs 48.98/- so, you can earn a high return on your investment.
  3. Low Share price – As stock of L & T is trading below its intrinsic value so you can invest in the company and expect a good return in a year or two after the recovery of the economy and end of the corona crisis.
  4. Management of the company – The company’s management is very strong and has been working on strengthening its order book across verticals like hydrocarbons,services, heavy engineering, infrastructure and other developmental projects which saw a significant decline this quarter.
  5. Low PE Ratio – The company has been running on almost low PE ratio ( price to earning ratio) which is a good sign to do investment in the company.
  6. Shareholding Pattern-

Price Forecast:

Q1 Results:

Comparison of the Q1 results YoY and with the previous Quarter.

Analyst’s take:
“They believe that their committed employees, diversified business portfolio, robust B/S and strong order book position will help them tide over the crisis,” Jefferies said in a post-earnings note. (Source: ET)

Buying Levels:

Considering the significant dip in profits and revenue of the company in Q1, the best buying levels suggested or BOD strategy recommended are at the price range of Rs.870-800.

The support levels are shown by the horizontal line.

Disclaimer: Kindly do your own analysis and research or consult your financial advisor before making any investment.

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