L&T gains 2%, hits new high; brokerages see more upside in stock price

Larsen & Toubro (L&T) share price today

 

Shares of Larsen & Toubro (L&T) hit a new high of ₹4,075.55, gaining 2 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes. The stock price of the civil construction major surpassed its previous high of ₹4,062.50 touched on October 30, 2025.

 

At 11:44 AM; L&T shares were trading 1.5 per cent higher at ₹4,053.10, as compared to 0.89 per cent rise in the BSE Sensex. A combined 847,000 equity shares changed hands on the NSE and BSE.

 

In the past four months, L&T has outperformed the market by surging 18 per cent, as against 5.5 per cent rise in the benchmark index.  READ STOCK MARKET UPDATE TODAY LIVE 

Brokerages see more upside in L&T stock price

 

L&T is India’s largest engineering & construction (E&C) company, with interest in Engineering, Procurement & Construction (EPC) projects, hi-tech manufacturing and services. L&T primarily operates in infrastructure, heavy engineering, defence engineering, power, hydrocarbon, services business segments.

 

L&T has significant ordering prospects of ~₹14 trillion, analysts at ICICI Securities believe L&T will surpass its order inflow guidance of 10 per cent on a larger base in FY26E. Overall, analysts expect revenues and profit after tax to grow at compound annual growth rate (CAGR) of 14.9 per cent and 16.5 per cent over FY25-FY27E.

 

According to ICICI Securities, given the backlog growth and pick up in execution there remains a strong revenue growth over the medium term. With continued focus on improvement of overall return ratios and aspiration of 18 per cent ROE by 2026E looks probable. It has assigned a 'BUY rating on the stock with target of ₹4,500 (SoTP based).

 

Meanwhile, L&T is optimistic about the Middle East region and expects orders to grow in the mid-teens over the next five years from this region. Sector diversification and country diversification within the Middle East helps L&T tide over the volatility in oil prices. With private and government capex ramping up in select areas, L&T hopes to maintain a mid-teen growth in order inflows in the medium to long term. 

 

The company's management remains focused on its capital allocation strategy and expects to hive off non-core assets soon and keep investing in new-age areas over the next five years. Analysts at Motilal Oswal Financial Services (MOFSL) maintain its estimates and BUY rating on L&T with an SoTP-based target price of ₹4,500, based on 28x two-year forward earnings.  ALSO READ | Sensex zooms 881 pts, Nifty tops 26100; why are stock markets rising today? 

Analysts expect a CAGR of 11 per cent in core EPC order inflows over FY25-28. With a strong track record of execution, MOFSL expects a 16 per cent CAGR in core EPC revenue over the same period, with core EPC margin assumption of 8.5-8.9 per cent for FY26-28. The brokerage firm thus expects a CAGR of 19 per cent/22 per cent in core EBITDA/PAT over FY25-28.

 

L&T anticipates healthy revenue growth and a significant increase in order inflow, indicating a promising performance in the future. Furthermore, its healthy order book is expected to drive strong performance in the upcoming quarters. The government's continued investment in infrastructure and the manufacturing sector is likely to provide substantial growth opportunities for the company, bolstering its prospects for sustained success, according to Geojit Investments

 

Recent strategic MOUs and partnerships in the company's renewables, green energy, defense, and semiconductor businesses have laid a strong foundation for future growth, positioning the company for long-term success. Therefore, the brokerage reiterated its BUY rating on the stock with a revised target price of ₹4,409, based on SOTP valuation.

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