Is Larsen and Toubro good for long term investment?

Larsen and Toubro ‘Strong order book, better prospects and great execution capabilities all point to L (ex IT/Fin/Dev. Projects) returning to mid-teen earnings growth. We expect 15\% Earnings Per Share CAGR over FY21-FY24E – similar to FY15-FY20. The shares of L were last seen trading at Rs 1,157 on the NSE.

Is Larsen and Toubro a good stock to buy?

The brokerage believes L has a strong potential to rerate from current levels and maintains BUY rating on the stock, with a revised SOTP-based PT of Rs2,200. Promoters held 0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 22.86 per cent, DIIs 33.11 per cent.

Why are Larsen and Toubro shares falling?

For FY21, L reported 21\% rise in consolidated net profit to Rs 115.8 bn on a 7\% decline in revenues to Rs 1,359.8 bn. The company attributed the decline in revenues to lockdown related disruptions in the first two quarters of the year and new norms of social distancing, quarantine procedures, and safety protocols.

How to find future multibagger stocks?

The last thing you should check to find future Multibagger stock is EPS growth Vs Valuation. The EPS means profit divided by the number of shares. The EPS of the stock must be at a reasonable level and the Valuation of the stock should not be very high. If the valuation of the stock is very high then it is not Multibbagger Stock.

What makes a company A multibagger?

They must have a disruptive product or a disruptive idea in the business. A capability to scale up quickly is at the essence of becoming a multibagger. If a company is presenting uninterrupted growth for a longer sustainable period of time, then it would surely turn out to be a multibagger stock in the future.

What are multi-Bagger stocks?

Or we can say that Stocks that give 100\% or more than 100\% return are known as multi-bagger. This term is especially used for high-growth Stocks. The term Multibagger is taken from two words “ Multi ” and “ Bagger ”.