Morgan Stanley has maintained its ‘Overweight’ rating on Larsen & Toubro (L&T) while trimming its target price to ₹3,877 from earlier levels. The brokerage continues to see L&T as a bellwether stock for capital expenditure cycles in India and the Middle East, citing a strong growth outlook despite the revision in target.
Morgan Stanley projects a 20% compound annual growth rate (CAGR) in core earnings for FY25–FY28, underpinned by strong execution momentum, robust order inflows, and growing exposure to overseas markets.
The report notes that a mega-order at the end of FY25 helped L&T finish the fiscal on a high note — making it the third consecutive year of strong performance in terms of large-scale order wins. Looking ahead, the brokerage expects domestic order inflows to rebound in FY26, further supporting its long-term growth narrative.
Of particular note is L&T’s expanding footprint in the Middle East. The company’s prospect list in the region now stands at USD 80 billion, according to Morgan Stanley, and continues to grow — providing significant upside potential over the medium term.
At the time of the report, L&T shares were trading at ₹3,244.90, indicating meaningful upside to the revised target.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
