L&T shares climbed 5% today; here are target prices

Shares of Larsen & Toubro LTd climbed over 5 per cent in Thursday's trade following a strong set of quarterly results. Analysts said order inflows and execution for the quarter surprised. They see the stock as the best bet to play the capex revival theme.

The L&T stock rose 5.22 per cent to hit a high of Rs 3,585 on BSE. The scrip is up a mere 1.35 per cent this calendar against a 10.49 per cent rise in the BSE Sensex.

"We reiterate Buy on Larsen & Toubro, with upward revised target price of Rs 4,300 (Rs 4,100 earlier), and marginally tweak FY26/27 EPS on account of higher order inflow and our estimates on execution. LT’s Q2FY25 performance surprised positively, with better-than-estimated growth in core order inflow/revenue, mainly led by International business, although margins came in lower at 10.3 per cent," Emkay Global said.

Nuvama said L&T beat the Street’s Q2 Ebitda and PAT estimates by 4 per cent and 6 per cent, respectively, led by robust execution (up 21 per cent YoY) with core operating profit margin at 7.6 per cent (up 20 bps YoY) seeming to have bottomed out. 

"Although order inflows fell 10.2 per cent YoY due to high-base of Rs 40,000 crore hydrocarbon orders last year, OI guidance is retained at 10 epr cent YoY growth implying a heavy H2FY25. Order book is at all-time high of Rs 5 lakh crore provides strong revenue visibility (~2.3x FY24 sales)," it said.

This brokerage has upgraded the stock ‘BUY’ on price correction, as the stock has underperformed since its downgrade in January 2024. The brokerage suggested a target price of Rs 4,000 for L&T.