Larsen and Toubro (L&T) shares were trading in negative terrain on Wednesday after Credit Suisse downgraded its stocks to “neutral” from “outperform” on order inflow worries.
At 9.39 am, the shares were trading 0.24 per cent down at Rs 1569.10. The share price of the company closed 1.44 per cent down at Rs 1550.35.
The rating agency further said that slowdown in Middle East, real estate, metals, hydrocarbons and unsustainable orders from power and roads sector may weigh.
Analysts led by Lokesh Garg estimated a 10 per cent cut in order inflows in the ongoing financial year (FY16), with implications on execution, pricing, working capital and valuations.
The rating agency further cut FY17 and FY18 EPS by 4 per cent and 3 per cent respectively.
L&T is expected to declare its second quarter results on October 30. Its stock has 35 “buy”, 9 “hold” and 2 “sell” ratings, according to Eikon data.
With inputs from Reuters