Larsen & Toubro - Strong beneficiary of a capex pickup; reiterating a Buy with target price of Rs 1763
Anand Rathi is upbeat about L&T as one of the key beneficiaries of infra-structure development for 90% of the addressable opportunity in the government’s Rs 102 trn planned investment over FY20-25 under the flagship NIP. Anand Rathi expects hydrocarbon capex in the Middle East to revive because of rising crude-oil prices. L&T Management is firm about restructuring non-core assets such as the Hyderabad metro-rail, power projects and road assets, which have been impacting return ratios.
The government has planned a staggering Rs 102 trn capex over FY20-25, under the NIP. L&T would be a major beneficiary as it is a proxy of infra development due to its highly diversified operations: Reuters