After posting strong quarterly numbers, what does Larsen and Toubro has to offer its investors?
The stock of LT has soared over 3% after it posted strong quarterly figures for Q1FY22-23.
The stock of Larsen and Toubro Ltd has gained investors’ confidence in the past years. On Tuesday, it posted strong growth fundamental numbers for Q1 FY22-23. The results beat street expectations as higher order inflows, strong margins paved the way to higher earnings in times to come.
Net profit rose 45% to Rs 1702 crore, while revenue was up 22% YoY. The company bagged over Rs 40,000 crore orders diverse from many core areas such as Metros, Water Management, Defence, Heavy machinery, etc. With such phenomenal performance, the stock jumped over 3% on Wednesday as the investors bet on this stock aggressively. The stock has crossed above its prior swing high of Rs 1785 level and has also risen above its 200-DMA. This month, it has already jumped over 15% from its prior swing low and is recorded good volumes. Interestingly, it has bounced above its 50% retracement level of a prior downtrend, which is a healthy sign. It is above all its key weekly moving averages and is in a strong uptrend for six consecutive weeks. Overall, the stock is set for a strong bull run in the medium term.
The 14-period daily RSI (57.59) shows strong strength in the stock. The MACD had signalled bullish crossover a few days back. Moreover, the OBV continues to be elevated, which shows increasing volumetric strength. The Elder Impulse System has charted a bullish bar and KST also shows bullish momentum of the stock. Thus, we can expect the stock to test higher levels in times to come.
As per the above points, the stock can test the level of Rs 2000, followed lifetime high level of Rs 2080 in the medium term. It holds a strong market presence in construction, modern real estate projects as well as defence-related activities. It is an integral part of many investors and can deliver you good returns for the medium term considering its robust business performance.
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