Larsen & Toubro (L&T)
March 10th, 2008
Symbol Code: LARTOU
L&T is one stock that is hit over 8% just after news came out that the company had some commodity hedging losses in FY08. The numbers of one of its subsidiaries would get effected because of this.
L&T stock opened at Rs. 2,910.50 and in less than 30 minutes, the script is trading at Rs. 2,665.00 levels. The company however said it will continue to stick to its sales, profits and margin guidance for FY08.
Entry Filed under: Equity Markets, Infrastructure
2 Comments Add your own
1. domains | March 11th, 2008 at 10:35 am
L&T is back into action as the stock jumped up by over Rs. 120 this morning compared to yesterday. Few analysts said that the markets have over reacted to the news and that the fundamentals of the company are very much intact. The medium to long term target for the L&T stock is at Rs. 4300 levels. Considering that the script is trading at Rs. 2840 levels, there is a huge upside and hence would be a good buying opportunity.
2. domains | March 11th, 2008 at 10:41 am
NSE Press Release
The media had reports that Larsen & Toubro Limited could incur loss of Rs 150 crore to Rs 200 crore from commodity hedging in the year ending March 2008 (FY 2008).
The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.
Larsen & Toubro Limited has vide its letter inter-alia stated, “We wish to clarify that during the year 2007-08, thre has been extreme volatility in the markets, especially in commodity prices. The Company has exposure in commodities and part of it is being hedged by it. As per the un-audited numbers, there could be a loss in commodity hedging of around Rs. 200 crore. The actual number will get crystalized on finalization of Accounts. We have reduced the exposures to a considerable extent. However, the Company maintains its guidance on order booking, sales and operating margins for the year with an emphasis on improvement in the operating margins.”
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