Wealth creation pick: Anil Singhvi recommends buying THIS stock
Anil Singhvi stock pick: Zee Business Managing Editor said that IT sector will bottom out in the next 3-6 months and this is a buying opportunity of L&T stock for investors.
Anil Singhvi stock pick: Zee Business Managing Editor Anil Singhvi suggests going long on construction major Larsen & Toubro (LT), a stock he believes has upside potential of as high as 50-60 per cent. In this special segment, Wealth Creation Pick, Singhvi explains the rationale behind his latest stock pick as well as the target price.
Why Anil Singhvi likes LT shares now
Singhvi said that 60 per cent of the company’s revenue comes from its capital goods and infrastructure business, which is outperforming.
The company's order book will grow in the next few years as the government is focusing on developing the country’s infrastructure, which will be a key positive for L&T, according to Singhvi.
The rest, 40 per cent, comes from its finance and IT arms, among which L&T Tech Services is growing rapidly.
Singhvi also said that 30-40 per cent of the revenue comes from L&T Tech Services, which is giving a strong cash flow.
Anil Singhvi's view on the Indian IT sector
The market expert believes the IT sector will bottom out in the next 3-6 months, which could well be a buying opportunity for investors.
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