CMP: 1400

Larsen & Toubro Ltd manufactures engineering equipment, undertakes large scale engineering projects, and acts as the Indian representative for a number of overseas manufacturers of heavy machinery. The Company's products include bulldozers, road rollers, dairy machinery, chemical and pharmaceutical plants, switchgears, food processing machinery and feed milling plants.

L&T is a safe large cap bet trading at a P/E of 17 with dividend yields of over 1% in the last 12 months. It runs at a debt of nearly 10,000 Crores with 2,000 Crores cash in hand. Revenues have risen from 24,854 Crores to 53,170 Crores in the last 5 years. Profits have risen from 2,173 Crores to 4,456 Crores in the last 5 years. Profit margins have dipped marginally towards 8% over the last 5 years. Buy and hold till Nifty peaks.