L&T stock rises as brokerages raise price targets post Q1 earnings

Shares of Larsen & Toubro Ltd. (L&T) climbed 4.3% to Rs 3,646 on Wednesday, placing them among the top performers on the Nifty 50 index. The surge comes as analysts raise their price targets in response to the company's robust first quarter performance for FY26. Jefferies remarked that L&T's order book growth suggests the full-year revenue growth guidance of 15% year-on-year may be conservative, as it revised its price target to Rs 4,230 from Rs 3,965 and maintained a "buy" rating.

CLSA also raised its target to Rs 4,176, noting positive surprises in several areas despite a margin pick-up yet to occur. Additionally, the company's strategic focus on expanding its Hydrocarbon business has been highlighted as a key factor in enhancing margins and sustaining growth.

The strong order inflow and better-than-expected first quarter results have positioned L&T to comfortably meet its full-year guidance on revenue, margins, and order inflow growth.

Jefferies highlighted the strong contribution from the Hydrocarbon business, offering "comfort on margins having some upside potential." The company's ability to manage working capital effectively has also been a significant positive factor, as noted by CLSA.

Morgan Stanley maintains an "overweight" rating with a price target of Rs 4,090, while Motilal Oswal projects a target of Rs 4,200, indicating a potential upside of 20% from current levels. The consensus among analysts reflects their confidence in L&T's strategic execution and robust order inflow, which have fortified its market standing.

With a "buy" stance also echoed by Jefferies and CLSA, L&T appears well-positioned to capitalise on its strong start to the fiscal year. The company's consistent performance and strategic initiatives have made it a preferred choice among investors looking for stable growth opportunities.