Buy Larsen & Toubro Ltd For Target Rs. 4,100 by Motilal Oswal Financial Services Ltd
* We expect consolidated revenue growth of 19% YoY, led by 21% YoY revenue growth for Core E&C.
* Key monitorables include domestic order pipeline, margin performance, as well as working capital cycle. The company has received its largest order to date for $4b from QatarEnergy.
* We expect a Core E&C EBITDA margin of 9.0%, down 50bp YoY (on a high base)/up 140bp QoQ, as more projects reach the margin recognition threshold and as legacy orders near completion.
* We would also look out for execution ramp-up in Saudi projects and trends in the GCC order pipeline.
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