A colleague of mine told that a Research Analyst working with a famous Australian brokerage house active in the Indian market, compared in his analysis Rolta India an IT company to L&T to raise the Target price of the stock. We all know that Engineering & Construction stocks enjoy far superior rating in this Bull market than IT stocks.
The day has come where research analysts don’t know how to react to results and how to evaluate a stock. DCF, EBITDA, EPS etc have all taken a back seat. Stupid theories like Rolta does lot of Engineering Design work so we should rate the stock like L&T are the basis of this mad market. I wonder how safe are the funds of Australian investors in the hands of these analysts 🙂