L&T: What's The Chart Is Saying Ahead Of Result? (1300-1340 & 1215-1175 Zone Is Vital)

Trading Idea: L&T

CMP: 1242

Sell on rise around 1300-1340 or 1385-1400;

TGT: 1215*-1195-1175*-1150-1125-1100*-1065-1050-1015-1005* (1-3/6M)

TSL> 1360/1415

Note: Consecutive closing (3 days) above 1415 for any reason, L&T may further rally up to 1450-1465-1500*-1515 and 1570-1615*-1675-1755 & 1800*-1895 in the near to long term (alternative bullish case scenario).

Expected Q4FY16 result of L&T (Consolidated):

PAT: Rs.2030 cr

Revenue: Rs.31429 cr

Exceptional Income: Rs.136 cr

EBITDA: Rs.4117 cr

EBITDA Margin: 13.1%

EPS: 21.80 (YOY: 9.33; QOQ: 11.11)**

Order inflow: Rs.47150 cr (44300-50000) 

against earlier co guidance of Rs.61700 cr (FY16:93500)**

Actual Q3FY16 TTM EPS: 50.25 (diluted)

Average PE: 22

Current fair value: 1105 (Q3FY16/TTM)

Projected Q4FY16 EPS:20.30

Projected Q4FY16 TTM EPS: 48.50 (FY:16)

Projected Fair Value: 1067 (FY:17/FWD)

L&T, being a "proxy" of  Indian economy, the result and subsequent guidance by the management may be quite important for our market.

Analytical Charts: