Larsen & Toubro (L&T)
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Larsen & Toubro (L&T) is navigating a complex operating environment, yet management remains optimistic about achieving its FY27 revenue growth target of 10-12%, supported by a robust order book of Rs 7.79 trillion and a substantial opportunity pipeline of Rs 15 trillion. Key developments include a strategic pivot towards high-margin international projects, particularly in offshore wind energy, and a significant order in AI infrastructure, which positions L&T as a critical player in the evolving tech landscape. Despite facing near-term execution challenges due to geopolitical tensions in the Middle East, management's proactive measures in supply chain management and cost recovery discussions are expected to mitigate risks. Vista's financial outlook reflects a stable margin environment and fair valuation, with an expected upside of approximately 13.27%. Over the next 12-24 months, L&T's focus on capital allocation and expansion into high-growth sectors like green energy and AI infrastructure will be crucial. However, investors should remain vigilant regarding potential project delays and geopolitical risks that could impact execution timelines
Why We Like This Stock
- Strong order book of Rs 7.79 trillion and a Rs 15 trillion opportunity pipeline support revenue growth
- Strategic expansion into high-margin international projects, particularly in offshore wind and AI infrastructure
- Proactive management strategies to mitigate geopolitical risks and enhance operational efficiency
Things To Watch Out For
- Execution challenges due to geopolitical tensions in the Middle East may impact project timelines
- Potential margin pressures from increased ECL provisions and forex losses
- Subdued project awards could lead to shrinking order books in the near term
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 221,113 | 255,734 | 285,874 | 286,993 | 322,606 |
| Profit Before Tax (Cr.) | 19,156 | 23,877 | 27,698 | 27,886 | 31,111 |
| PBT Margin | 8.7% | 9.3% | 9.7% | 9.7% | 9.6% |
| Net Profit (Cr.) | 14,346 | 17,685 | 20,287 | 20,704 | 19,830 |
| Earnings Per Share | 86.2 | 109.4 | 126.6 | 129.2 | 144.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BofA | ▲ Buy | 4,430 | 24-Sep-2026 |
| CLSA | ▲ Outperform | 4,842 | 23-Sep-2026 |
| JPMorgan | ▲ Buy | 5,060 | 22-Sep-2026 |
| Jeffries | ▲ Buy | 5,000 | 18-Sep-2026 |
| Citigroup | ▲ Buy | 4,650 | 02-Sep-2026 |
| Macguire | ▲ Buy | 4,910 | 01-Sep-2026 |
| LKP Securities | ▲ Buy | 4,570 | 30-Jul-2026 |
| Elara Capital | ► Accumulate | 4,251 | 29-Jul-2026 |
| Goldman Sachs | ▲ Buy | 4,370 | 29-Jul-2026 |
| ICICI Securities | ▲ Buy | 5,000 | 29-Jul-2026 |
| JMFinancials | ▲ Buy | 4,640 | 29-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 29-Jul-2026 |
| Motilal Oswal | ▲ Buy | 4,550 | 29-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 4,425 | 29-Jul-2026 |
| Nomura | ▲ Buy | 4,200 | 01-Jun-2026 |
| Investec | ▲ Buy | 4,440 | 15-May-2026 |
| Bernstein | ▲ Buy | 4,637 | 06-May-2026 |
| HDFC Securities | ▲ Buy | 4,529 | 06-May-2026 |
| HSBC | ► Hold | 3,800 | 06-May-2026 |
| Morgan Stanley | ▼ Underweight | 4,968 | 06-May-2026 |
Company Overview
Show Company Profile
Larsen & Toubro Limited engages in engineering, procurement, and construction projects (EPC) in India and internationally. The company operates through four segments: Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, and Others. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission & distribution, renewables, water and effluent treatment, and minerals and metals. The Energy Projects segment provides EPC solutions in clean energy space, oil & gas, refineries, petrochemicals & offshore wind energy sectors, from front-end design through detailed engineering, modular fabrication, procurement, project management, construction, installation and commissioning; CarbonLite solutions for power generation plants including power generation equipment with associated systems; and carbon capture utilization and utility packages. The Hi-Tech Manufacturing segment designs, manufactures/constructs, supplies, and revamps/retrofits custom designed engineered critical equipment and systems for the process plants, nuclear energy, and green hydrogen sectors; marine and land platforms, related equipment and systems, and aerospace products and systems; precision and electronics products and systems; and electrolysers. The other segment engages in realty; smart infrastructure and communication projects; construction equipment; and industrial product design development, including marketing and servicing of construction equipment, mining machinery and parts thereof, manufacture and sale of rubber processing machinery, and ecommerce/digital platforms and data centers. It has a strategic partnership with General Atomics Aeronautical Systems, Inc. to manufacture Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft Systems (RPAS) in India, for the Indian armed forces. The company was founded in 1938 and is headquartered in Mumbai, India.