L&T hits a new 52-week high

L&T is currently the top gainer on the BSE Sensex, with the stock hitting a new 52-week high at Rs.1221.80. It continues to remain strongly in the green, up over 5%.

The stock is buzzing loud and strong today after foreign brokerage house, Citi put out a report citing reasons why it thinks the stocks target price should be hiked from Rs.1137 to Rs.1305.

Citi expects the company a 15% rise in sales over three fiscals – FY14 to FY16, with margins remaining stable. Once the Indian economy bounces back, it expects L&T to jump back into action, much more than its peers and if the bounce back takes time, Citi expects robust export orders to keep the coffers going.

Also with the current mood in the markets, where FIIs are looking at a Modi win, they expect infra and capital goods companies to benefit immensely once a stable Govt is in place. Irrespective of the Govt in place, it is a given fact that any Govt which comes to the center will first take steps to boost the economy.