- Order pipeline of Rs5.2tn over the next 6 months with high deferral risks. Slow moving orders could cause revenue loss of Rs60bn annually, or 4% of FY19 consolidated revenues

- No levers for expansion in contracting EBITDA margins.

- L&T won’t invest in manufacturing capabilities but focus on being EPC player competing on L1, with private sector share at only 20% of orders. Affordable housing (private) and roads/railways/defence (public) are the only green shoots. But L&T is focusing on EPC in roads while defence has become negligible due to stiff competition (pushback) from DPSUs.

- Disappointment on inflows, margins and WC cycle and could become catalysts for stock price decline

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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