L&T, Prestige Estate, Kaynes, Voltas, IRB Infra, V-Guard, TTK Prestige Q2 Results Review: HDFC Securities

HDFC Securities Institutional Equities

L&T - Stable order booking; in-line performance

Larsen & Toubro Ltd. reported revenue/Ebitda/adjusted profit after tax at Rs 615.5/63.6/33.9 billion, a beat/(miss) of 6.3/0.6/1.5%. P&M margins came in at 7.6% (+20 bps YoY), and L&T expects to maintain a positive YoY margin expansion trend in ensuing quarters and retained 8.2-8.25% guidance for FY25.

Despite Q2 FY25 being impacted by heavy monsoon, L&T reported strong 20.6% YoY revenue growth and maintained 15/10% revenue/order inflow guidance for FY25.

As the share of export orders is increasing in the mix, L&T expects FY25 execution to have a higher share of lower margin fixed price export orders (baked in margins guidance); it guided margin rerating to be driven by infra segment margins improvement, largely led by internal efficiency and commodity prices remaining at current level in fixed price international order book.

Given- the record-high order book of Rs 5.1 trillion; likely bottoming out of infra margins; improvement in subsidiary performance; and higher public capex towards a green economy, we maintain our Buy stance with a SOTP based target price of Rs 4,270/share (29 times Dec-26E earnings per share).

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