Credit Suisse has downgraded Larsen and Toubro to "underperform" from "neutral" and cut the price target to Rs 713 from Rs 955 ahead of the engineering and construction firm's earnings on Friday.
Credit Suisse says it expects L&T's domestic order flow to have slowed down, while an increasing share of overseas orders is of lower margin.
The investment bank also notes L&T's shares look "expensive," given the declining outlook for earnings.
L&T shares were down 3.8 percent in late trade at Rs 838.70.
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