Pick of the Week: Larsen & Toubro Limited.

1. Larsen & Toubro Ltd.
 A company was founded in Bombay (Mumbai) in 1938 (British India) by two Danish engineers, Henning Holck-
Larsen and Soren Kristian Toubro. The company began as a representative of Danish manufacturers of dairy
equipment.
 L&T has delivered Engineering, Procurement and Construction (EPC) services for many projects in the
upstream hydrocarbon sector over the last two decades, in India, Middle East, Africa, South-East
Asia and Australia.
 L&T manufactures, markets and provides service support for construction and mining machinery, surface
miners, hydraulic excavators, aggregate crushers, loader backhoes and vibratory compactors; supplies a wide
range of rubber processing machineries and manufactures and markets industrial valves and allied products
and a range of application-engineered welding alloys.
 This is a joint venture of L&T and Kobe Steel of Japan, to manufacture internal mixers and twin screw roller-
head extruders for the tyre industry. The Company has set up a factory at Karai Village, Kanchipuram to
manufacture Internal Mixers and Twin Screw Roller head Extruders for the tyre industry and commenced its
commercial operations in December 1, 2012.
 Technical Outlook
 On Daily chart, the stock has completed a “Bullish Anti Cypher” harmonic pattern at 1412.35 levels, the co-
ordinates of which are as follows:
 Technical Parameter: XA of the leg from 1543.60 to 1888,AB of the leg completed at 1704.05 (i.e.50% of XA
leg.) ,BC of the leg completed at 1844 (i.e. near 78.60% Fibonacci Projection of BC leg) and CD of leg
completed at 1412.35 levels. (i.e. 127.20% of XA and 261.80% of BC leg).
 Recently, the stock has taken support of its horizontal trend line at 1414.50 levels on daily chart, which acted
as good support in past as well. After taking support, stock gave good upswing, so can expect the same
identical move from the current level.
 On weekly chart, stock has formed “Bullish Hammer” candlestick, which is bullish reversal pattern and
showing that stock could propel upside move based on this pattern.
 Moreover, on the daily chart the momentum indicator RSI has shown strong bounce from oversold zone
territory which indicates the possibility of strong bounces in prices.
 Based on the mentioned technical setup, we believe that the stock could reach towards 1675 levels in few
trading sessions.
Company LT
Recommendation Buy
Sector : Capital Goods
CMP : 1490 & Buy Upto 1475
Price Potential : 1675
Stop Loss (Closing Basis): 1400
Mkt Cap (Rs. Cr.): 1,38,603
TTM EPS (Rs.) 47.32
TTM Sales (Rs. Cr.) 93,282
BVPS (Rs.) 442.31
Reserves (Rs. Cr.) 41,075
P/BV 3.37
PE 31.47
Bloomberg Code : LT:IN
Reuters Code : LART.NS
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: Larsen & Toubro Limited.
03rd Oct, 2015
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2. Pick of the Week: Larsen & Toubro Limited.
03rd Oct, 2015
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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