🚝 Larsen & Toubro (LT)🚝
🌟About Company:
Larsen & Toubro (L&T) is India's largest engineering and construction (E&C) firm, with a focus on EPC projects, high-tech manufacturing, and services. Its primary business segments are Infrastructure, Heavy Engineering, Defense Engineering, Power, Hydrocarbon, and Services.
🌟LT group has many companies under it i.e., LTTS, LTI, L&TFH, and Mindtree, which makes it a very lucrative choice for the investors. And, also helps investors to diversify their portfolios.
🌟The stock is currently trading at a P/E of 25.8, which is good considering you're getting the benefits of its different busineses as well.
🌱 Fundamental Growth Drivers 🌱
➡️ L&T is well-positioned to benefit from an increase in economic activity and private CAPEX due to its financial, technical, and managerial capability for sustaining, gaining market share, and focusing on the divestment of non-core assets.
➡️ In the next five years, L&T will concentrate on emerging portfolios such as Green EPC, electrolyser manufacturing, battery and cell manufacturing, data centres, and platforms (Sufin & Edutech).
➡️ Concentrate on asset monetisation to strengthen the balance sheet and boost return ratios.
➡️ The company has a strong balance sheet, well-managed working capital, and high cash generation.
➡️ The strong order book of 3,57,600 crores held by L&T indicates good revenue visibility in the coming years.
➡️ The company's management predicted a 12-15% increase in revenue and order inflow for FY23, with a core EBITDA margin of 9.5%.
📈 Technical Analysis 📈
➡️ The stock is trading below its 50,100 & 200 days EMI and has been downtrend for the past five months.
➡️ For the past five months, the stock has been following a trendline, a decisive break of which will result in a sharp upmove.
➡️ The stock has been building a higher high and higher low pattern over the last month, which is a sign of strength for the stock.
➡️ The stock price is moving in a narrow range, and a break will result in a larger move on either side.
💰Entry:
🌟If it breaks through the upper trendline, it is good to go long in the stock.
🌟If the stock breaks the lower trendline, one can short sell it.
💰💰 Long-term investors can accumulate this stock in the range of Rs 1300 - Rs 1420. It is a good demand zone 💰💰
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