Larsen & Toubro’s stock price surged 1.84% to Rs 2,983.15, however, it retreated later by 1.04% to Rs 2,898.70 a day the company posted a 44.6% rise in consolidated net profit at Rs3,223 crore for the quarter that ended September 30, beating estimates, aided by improved execution and accelerated progress in its projects and manufacturing portfolio. During the reporting quarter, L&T’s consolidated revenue rose 19.3% to Rs 51,024 crore from Rs 42,763 crore recorded during the same period a year ago. The company’s EBITDA rose 15.1% to Rs 5,632 crore from year-ago quarter, L&T said in a statement.
The stock price of Larsen & Toubro gained 0.15%, while it dropped 5.64% in the last one month, while it gained 21.62% in the last six months and 38.79% year to date.
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Should you buy, sell or hold L&T shares?
Jefferies: Buy – Target Price: 3,400
“Management on the call mentioned that L&T should do better than the FY24E order flow/revenue guidance, but margin was revised to 8.5-9% from 9% earlier. We lower our FY24E-26E EBITDA by 2-3% to factor the same, but if projects reach margin recognition levels earlier, this could be surprising. Prospect pipeline is up 39% YoY. ‘Buy’ with SOTP-based Target Price of Rs 3,400, valuing the core business at 16x EV/EBITDA Sept.25E.”
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Prabhudas Lilladher: Buy – Target Price: 3,437
“We believe L&T is well-placed to benefit in the long run with 1) strong tender prospects, 2) better order conversion in the domestic market, 3) significant traction in hydrocarbons and 4) renewable energy orders from international markets like Saudi Arabia and expected uptick in private capex in the domestic market. The stock is currently trading at PE of 30.3x/25.7x/22.1x FY24/25/26E. We revise our FY24/25E by 6.1%/5% factoring in improved performance of Hyderabad Metro, strong order book and tender prospects. We roll forward to Sep’25E and maintain ‘Buy’ rating on stock with revised Target Price of Rs 3,437(Rs 3,302), valuing core business at PE of 24x Sep’25E.”
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HDFC Securities: Buy – Target Price: Rs 3,613
“Given uncertain geopolitical issues and the upcoming Indian election, LT has kept guidance open-ended with a positive bias of surpassing the same. Given: (1) the record-high order book (OB) of INR 4.5trn; (2) bottoming out of infra margins; (3) improvement in subsidiary performance; and (4) higher public capex towards a green economy, we maintain our ‘Buy’ stance on the stock with an unchanged SOTP based Target Price of Rs 3,613/sh (standalone P/E multiple of 26x on Sep-25E EPS).”
(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
