L&T, Shree Cement, Navin Fluorine, Voltas, SRF, Dr. Lal, Astral, Quess Corp & More Q3 Review— HDFC Securities

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HDFC Securities Institutional Equities

L&T - Muted performance; strong order inflow

Larsen and Toubro Ltd.’s revenue/Ebitda/adjusted profit after tax came in at Rs 646.7 billionn/62.5 billion/33.6 billion, missing estimates by 2.3%/10.7%/10.8%. P&M margins stood at 7.6% (flat YoY), and L&T retained its guidance of 8.2-8.25% for FY25.

It reported strong 17.3% YoY revenue growth and now expects to exceed its FY25 revenue/order inflow guidance of 15%/10%, having already achieved 17.7%/16% for 9M FY25. Given the high share of export orders in the mix (54% in 9M FY25 versus 60% YoY), L&T expects FY25 execution to have a higher proportion of lower-margin fixed-price export orders (baked into its margin guidance).

The company guided that margin re-rating will be led by improvements in the infrastructure segment, mainly from internal efficiencies and commodity prices remaining at current levels in fixedprice international order books. Given-

1. the record-high order book of Rs 5.6 trillion,

2. the likely bottoming out of infrastructure margins,

3. improvements in subsidiary performance, and

   higher public capex towards a green economy, we maintain our Buy stance with an SOTP-based target price of Rs 4,339 per share (29x Dec-26E EPS).

Shree Cement - Focus remains on margin over volume

We maintain our Add rating on Shree Cement Ltd., with an unchanged SOTP target price of Rs 00/share. In Q3 FY25, Shree’s volume declined 1% YoY as it focused on value over volume. The strategy paid off as its cement NSR recovered 3% QoQ (outpacing peers), adding to Rs 300/metric tonne QoQ margin expansion, which reached Rs 1,079/mt. Additionally, margin also benefitted from op-lev gains and lower fuel cost rate. It will be commissioning 15.4 mnmt of cement capacity by Q1 FY26, across Rajasthan, UP, Chhattisgarh and Karnataka. These should accelerate volume growth during FY26/27E vs flattish growth in FY25E.

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