Larsen and Toubro is one company that has interest in diverse segments related to the economy including infrastructure, engineering, construction, logistics and financial services.

This is why many analysts keenly watch the quarterly numbers of Larsen and Toubro to see if there is any economic recovery in sight for the country.

The stock plunged to a new 52-week low on the very disappointing commentary.

Today, as much as 38 per cent of L&T's order book is from international orders. In fact, a significant amount of these orders come from the Middle East. With oil prices depressed and many countries in the Middle East withdrawing from their sovereign wealth funds, it's difficult to see how L&T's order book from the Middle East will remain robust.In fact, budgets of countries in the Middle East have gone for a toss as Crude oil prices have halved in the last 1-2 years.

The company may now have to increasingly shift focus to the Indian markets, which it did in the 90s and early part of the 2000s.

But here again the company's commentary has not been very encouraging. "The ground level inputs indicate that it may take further time for significant pick-up in business opportunities."

Clearly, it's tough times for L&T. For a stock that had hit as much as Rs 1800 plus, the stock is now at a new 52-week low. Anything that has under performed will be dumped by investors. However, if the stock falls further, it maybe a good pick, given the solid track record and great execution capabilities.

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