Larsen & Toubro gains 3%, nears record high; why infra stock in focus?

Larsen & Toubro (L&T) share price today

 

Shares of Larsen & Toubro (L&T) rallied 3 per cent to ₹4,109 on the BSE in Friday’s intra-day trade. The stock price of the civil construction major was quoting close to its record high of ₹4,139 touched on November 27, 2025.

 

Thus far in the calendar year 2025, L&T stock has outperformed the market by surging 12 per cent as against 8.4 per cent rise in the BSE Sensex.

Why is L&T stock in focus on Friday?

 

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.

 

 

Infrastructure segment contributes 45 per cent of consolidated revenue followed by services (26 per cent), energy projects (20 per cent) and international markets (46 per cent of backlog from international markets).

 

India's economic outlook continues to remain optimistic. The domestic conditions are favourable with GDP growth for FY '26 projected between 6.5 per cent and 7 per cent, largely driven by retail consumption, resilient services sector and steady capex. The new private sector capital expenditure plans are also being driven by increased investments in Manufacturing, Renewables, Real Estate, Digital Infrastructure and Power Generation projects, even as the public infrastructure continues at a steady pace.  ALSO READ | Allied Blenders gets new 'Buy' from JM Financial; 19% upside seen for stock 

Order prospects for remaining H2FY26E stands at ₹10.4 trillion, up 29 per cent year-on-year (YoY) (vs ₹8.1 trillion same period last year), of which Infra is ₹6.5 trillion (₹5.42 trillion) and energy projects is ₹2.93 trillion (₹2.25 trillion). Domestic prospects constitute 49 per cent of total order prospects.

 

According to reports, Goldman Sachs has upgraded L&T stock to "BUY" from its earlier recommendation of "NEUTRAL". It also raised its price target on the stock to ₹5,000 from ₹3,730 earlier. The brokerage firm believes that L&T is poised for growth in the defence, green hydrogen and the nuclear power market, CNBC TV18 reported.

 

Securing order inflows over and above the guidance range speaks of the diversity of the company’s operations. Analysts at ICICI Securities believe 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. The brokerage firm maintains BUY rating with target of ₹5020 (SoTP based).  ALSO READ | Lloyds Engineering Works rises 3% on incorporating new defence unit 

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. 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, said brokerage firm Geojit Investments.  ===================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.