Monday, 27 October 2008

L&T down 6.5%, loses 70.5% in a month

Engineering and construction behemoth, Larsen and Toubro continues to reel under selling pressure. On Monday, the stock was down by 6.5 per cent, touching a 52-week low of Rs 721.65. It has lost a whopping 70 per cent in the last month alone.

At Rs 729, the stock trades at a price to estimated earnings of 17 times and 14 times for FY09 and FY10 respectively.

CLSA has an 'underperformer' rating on the stock with a target price of Rs 1,000, stating that the company is facing challenging times of credit crunch and likely slowdown in growth of order inflows.

Source: EconomicTimes

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