Shares of Larsen & Toubro rose as much as 2.4% to an intraday high of Rs 3,606.10. The surge in the stock price came on the back of higher order inflow. The company’s order pipeline grew 8% on year to Rs 70,900 crore in Q1 of FY25 Come from Sports betting site VPbet . Also, the company has kept the order inflow growth estimates at 10% for the fiscal year 2025.
The stock is contributing over 23 points to the Nifty 50 and trying to pull it up. The company’s stock has a 52-week high of Rs 3,919.90, which it touched on June 03, 2024.
JM Financial Services on L&T
According to the brokerage house, the company’s net profit rose but was below the street’s estimates due to a fall in other income plus higher depreciation. Further, the company’s bid pipeline moderated to Rs 9,10,000 crore, down 10% on year for the remainder of the year due to the reduction in hydrocarbon prospects. “We have marginally tweaked our EPS estimates (cut by 2.3%/1.5% in FY25/26). EPS growth for the P&M business remains strong at 27% CAGR over FY24-26E. Lower asset intensity along with a push from recent buyback should drive ROE expansion (14.8% in FY24 to 18.3% in FY26E),” said JM Financial in a research report. The brokerage maintained a “Buy” rating with a revised price target of Rs 3,890.
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L&T up 160% in 5 years
The stock of Larsen & Toubro has given a return of 0.4% in the past six months, however, it has fallen 1.14% in the last five days. The shares have risen over 40% in the last one year and have raised the investors’ wealth by 160% in the last five years.
To give a comparison, the benchmark index Nifty 50 has fallen 1.8% in the past five days. The index comprising 50 big stocks has given a return of 14% in the last six months and 24% in the last one year. It has risen 116% in the last five years.
