Maintain Buy with a revised PT of Rs. 1,820:
L&T re-jigged its investments by taking impairment in key subsidiaries, stake divestmentof financial subsidiaries, transfer of road assets in InvIT and acquisition of Mindtree. Further, fructification of sale of the electrical and automation business worth Rs. 14,000 crore would materially improve its liquidity and cash surplus. We believe L&T, being a quasi-domestic infrastructure play, is expected to benefit over the next five years, as the incumbent governmentenvisages Rs. 100 lakh crore investments in infrastructure till 2024. Weexpect L&T to be a key beneficiary from the expected big-ticket size project awards domestically. Further, L&T’s geographical diversificationwould aid it to reduce its risk from volatility in crude prices. Hence, at this stage, we maintain our Buy rating on the stock with an unchanged SOTP- based price target (PT) of Rs. 1,820.