Larsen & Toubro - Lowered Guidance; Maintain ACCUMULATE :Emkay

n     Mixed Bag  performance in Q2FY12 – Ebidta margins decline 30 bps yoy but APAT grew 28% to Rs8.0 bn – led by higher other income

n     Q2FY12 order inflows of Rs161 bn (down 21% yoy) & H1FY12 down 11% to Rs330 bn – Asking rate for H2FY12 increases Order book of Rs1,422 bn  – 3.2X sales

n     Lowered guidance – order inflows growth of 5% and Ebidta margins decline 75-125 bps – Same remains factored in our estimates

n     L&T at attractive valuations of 14.9X FY13E earnings, but lacks re-rating catalysts- Maintain ACCUMULATE with target price of Rs1603/Shares