L&T stock remains on analysts' hotlist despite guidance worries

The company has cut its margin guidance due to higher share of fixed-price contracts, supply chain issues, and geopolitical uncertainties

Larsen & Toubro’s (L&T’s) result in the fourth quarter of the financial year 2023-24 (Q4FY24) was ahead of estimates but the guidance included a warning about lower margins. The company reported a 15 per cent year-on-year (Y-o-Y) rise in revenues, 6 per cent growth in earnings before interest, taxation, depreciation and ammortisation (Ebitda) and 8 per cent Y-o-Y growth in profit after tax (PAT) on a consolidated basis.

The core Engineering & Construction (E&C) revenue grew 18 per cent with Ebitda up 22 per cent, and the Ebitda margin at around 9.5 per cent. It also guided for a 24