28-Oct-2026 07:53:43
CLSA ON L&T ; MAINTAIN OUTPERFORM | TP ₹4,842 (CMP ₹3,665.10)
• Maintains OUTPERFORM rating on L&T with a target price of ₹4,842. • Q2 FY27 results beat expectations on order inflows, execution and working capital, while margins missed estimates. • Engineering & Construction (E&C) execution grew 22% YoY despite disruptions in West Asia. • West Asia business grew 26% YoY, while India business recorded 16% YoY growth. • West Asia order inflows rebounded strongly, supporting a robust order pipeline. • Order backlog surged 28% YoY to approximately $90 billion, providing strong revenue visibility. • FY27 guidance maintained at 10–12% growth in both order inflows and execution, with margins expected to remain flat. • FY31 strategy focuses on AI, electronics manufacturing, green technology and chemicals. • Secured India's largest Nvidia AI factory order, strengthening its presence in emerging technology infrastructure. • Target price of ₹4,842 implies approximately 32.1% upside from CMP of ₹3,665.10.
LARSEN & TOUBRO LTD.