We hosted Larsen & Toubro (L&T) at Edelweiss India’s Singapore Conference 2022. Key highlights: i) Centre/PSU capex is likely to drive infra momentum, even as macro concerns persist, while states lag. ii) Active core business portfolio rationalisation has helped optimise competitive positioning in high-growth segments like water/transportation/hydrocarbon/B&F. iii) Defence/ thermal power/hydrocarbon to lead mid-term growth. All in all, L&T re-iterated a healthy pipeline and robust return/growth scale-up trajectory with a sharper focus on sustainability, expanding into emerging businesses. Metro turnaround, Nabha exit and buy-back would be levers to 18% RoE corridor, in our view. Retain ‘Buy’ with a SoTP-based TP …
