Buy Larsen, says Tulsian

Investment Advisor SP Tulsian is of the view that one can buy Larsen at Rs 920-930 level.

Tulsian told CNBC-TV18, "The management of Larsen has indicated a couple of months back for FY09-FY10 that they have a visibility of a bout 35% growth on topline and bottom line and as we have discussed just now they have a 2.3 times order book based on the current turnover and current performance of the company and 70% of the orders have the cost plus contract entered into with the principle. So I do not think that you have a lot much concern in the performance of the company. Maybe the growth could taper off maybe from 35% to 30%, profitability will continue to remain there; growth will continue to remain there because they are very prudent for any investor."

He further added, "In the process of results announcement maybe if it gets corrected to an Rs 920 or Rs 930, probably that�s the best entry point. So if one has a horizon of about 1.5 years, my advice to go ahead even at the current levels of Rs 950 to Rs 960, don�t look for maybe a loss of Rs 20 or Rs 30 post your buying, so this is the best stock to remain invested. In fact in such times only you get these kinds of stock at such low valuations."

Source: Moneycontrol