CLSA has reiterated its outperform rating on Larsen & Toubro with a target price of ₹4,320 per share. At the current market price of ₹3,527.50, the target implies an upside of about 22 percent.
The brokerage said it is optimistic about L&T meeting its FY26 guidance after a strong start to the year. In the first quarter, the company’s engineering and construction (E&C) orders rose 41 percent year-on-year, profit after tax was up 31 percent, and return on equity expanded by 230 basis points.
CLSA noted that the capex cycle in India has gathered pace, with government investments more than doubling between FY19 and FY24. L&T has been a major beneficiary, winning large projects during this period. The brokerage said the company is now operating on a “different plane” as a global EPC firm with a much larger target market. The ability to pick and choose orders is expected to support medium-term margin expansion.
A major opportunity for L&T in FY26 lies across 12–15 projects, each valued at over $1 billion, in both the Middle East and India. CLSA said management’s margin expansion guidance should help ease market concerns and reinforce confidence in execution strength.
Disclaimer: The views and investment recommendations expressed above are those of CLSA. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.