L&T shares fall 4% after Bank of America ML downgrades to neutral

According to the brokerage, L&T may register 14 percent sales & 16 percent EPS CAGR in FY19-21

Larsen & Toubro shares fell more than 4 percent intraday on July 8 after global brokerage house Bank of America Merrill Lynch downgraded the stock to neutral with a target price at Rs 1,719, implying 10 percent potential upside from current levels.


"The stock priced well for mid-cycle and there is limited scope for positive surprises," said the investment firm that does not expect acceleration to capex cycle in the near term.

Bank of America Merrill Lynch said government capex as a percentage of GDP has peaked at 6 percent while growth in real estate & private capex is likely to remain muted.

According to the brokerage, L&T may register 14 percent sales & 16 percent EPS CAGR in FY19-21.

The stock was quoting at Rs 1,498.80, down Rs 58.30, or 3.74 percent on the BSE at 1248 hours IST.

Disclaimer: The views and investment tips expressed by brokerages on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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