Global brokerage firm JPMorgan has initiated coverage on Larsen & Toubro (L&T) with an ‘Overweight’ rating, setting a target price of ₹4,360 per share. The firm highlights L&T’s attractive valuation, with the stock trading at 25 times its estimated core earnings per share (EPS) for FY26, and projects a robust EPS compound annual growth rate (CAGR) of 23% over FY24-FY27.
JPMorgan expects L&T’s fast EPS growth to be supported by a healthy core revenue growth of 16% and approximately 60 basis points of core margin expansion over the same period. The brokerage also emphasizes the company’s solid fundamentals, noting its extensive capabilities, large order book, strong balance sheet, and healthy cash flows.
According to JPMorgan, these factors position L&T well to capitalize on capital expenditure (capex) tailwinds in both India and the Middle East, offering a compelling growth opportunity at a reasonable valuation.
