L&T sees upside potential despite market pessimism, fuelled by strong international orders: Priyankar Biswas
«So, especially, the thought process was that the Middle East capex is slowing down, the oil capex of Aramco, that will slow down. However, having said that, they delivered very strongly on the 2Q numbers and what we are saying that 3Q numbers may be at a record level versus other quarters,» says Priyankar Biswas, BNP Paribas.
What the expectations are when it comes to the Q3 of this year, clearly the ports and logistics sector are expected to be a bit softer?
Priyankar Biswas: Yes, that is correct. At least for the port space, we are seeing a fair bit of softness. So, we have actually put out something today on this aspect. So, what we are witnessing is that port volumes, so the big players like Adanis and the Gujarat Pipavavs and even the major port volumes are very much out in the public domain. And we can see there is already a softness that is being witnessed all across the board.
So, there has been weakness in, let us say, iron ore exports as well from India. The coal volumes in particular has been weak. So, based on that, we are seeing that the port volume has disappointed. But having said that, the mix has improved. So, for instance, container volumes are still growing in double digits, so that is one thing that is more like an offsetting factor here.
L&T, now that stock is down almost more than 1.5% in today's trading session. But you have increased the target price and with an upside of almost 20 plus percent, tell us what is interesting you in L&T, what is the upside, and what are the triggers and
