Shares of Larsen & Toubro (L&T) remain in focus after Jefferies reiterated its ‘Buy’ rating and raised the target price to ₹4,230 from the earlier level, implying a potential upside of over 21% from the current market price of ₹3,488.00.
Jefferies highlighted that L&T’s first-quarter FY26 EBITDA was 7% ahead of expectations, driven by stronger-than-anticipated execution. The company reported a robust 33% year-on-year growth in order inflows, placing it in a solid position to comfortably meet its full-year guidance of 10% YoY growth in orders.
The brokerage noted that a higher contribution from the hydrocarbon segment is likely to support margin improvement, lending further strength to the earnings trajectory. Despite this, L&T’s FY25 revenue growth guidance of 15% YoY appears conservative in Jefferies’ view, considering the recent momentum in the order book.
The strong combination of execution performance and diversified order inflow gives Jefferies confidence in L&T’s upside potential and sustained earnings delivery in FY26.
Disclaimer: The views and investment recommendations expressed in this article are those of Jefferies and do not represent the views of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
