Reuters Market Eye - J.P. Morgan downgrades Larsen & Toubro Ltd (L&T) (NSI:LT.NS - News) to "neutral" from "overweight" and maintains its target price of 970 rupees, saying the current share price adequately discounts near-term positives.
The investment bank adds it remains wary of risks associated with deteriorating working capital, higher-than-expected margin drag on overseas orders and a rise in the proportion of slow-moving orders.
JP Morgan says valuations at 18 times one-year forward earnings are not cheap for the company.
L&T shares down 0.8 percent at 1322 IST.
(Reporting by Abhishek Vishnoi)