Larsen & Toubro Ltd.'s share price jumped over 6% on Thursday, following the company's steady quarterly earnings report and encouraging forecasts from brokerages.
For the September quarter, L&T reported a 20% year-on-year increase in revenue, reaching Rs 61,554 crore, which aligned with market expectations. Operating profit rose by 13% to Rs 6,632 crore, although the Ebitda margin contracted slightly by 70 basis points to 10.33%. Net profit also saw a 7% increase, totaling Rs 4,113 crore.
Brokerages responded positively to L&T's performance, reinforcing their bullish outlook on the stock. Jefferies maintained a 'buy' rating, setting a target price of Rs 4,160 per share, which suggests a potential upside of 23%. The brokerage highlighted the significant growth in L&T's engineering and construction margins, noting a 84% year-on-year increase in international execution, despite modest domestic order flow.
Nomura also has a 'buy' rating with a target price of Rs 4,100 per share, citing a favourable risk-reward profile supported by solid international order inflows and a manageable domestic pipeline. Bernstein maintained an 'outperform' rating, emphasising L&T's resilience in managing working capital amid global uncertainties.
Emkay has set an even more optimistic target of Rs 4,300, indicating a 26.2% potential upside, driven by an upward revision in its fiscal 2026-27 earnings forecast. Nuvama also echoed this sentiment, with a target price of Rs 4,000 apiece, noting that L&T's second quarter results exceeded market expectations, aided by strong year-on-year execution growth and stable core operating margins.
Larsen & Toubro Share Price Today
The scrip rose as much as 6.49% to 3,629.65 apiece. It pared some gains to trade 6.47% higher at Rs 3,628.95 apiece, as of 09:51 a.m., compared to a 0.22% decline in the NSE Nifty 50.
It has risen 22.55% in the last 12 months. Total traded volume so far in the day stood at 7.6 times its 30-day average. The relative strength index was at 57.
Out of 35 analysts tracking the company, 30 maintain a 'buy' rating, four recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 12.6%.
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