Shares of Larsen & Toubro (L&T) surged 3.98% to ₹3,240 in Tuesday’s trade, gaining momentum ahead of its Q4FY25 earnings announcement and supported by a fresh brokerage update from HSBC. The stock opened at ₹3,180 and touched an intraday high of ₹3,253, compared to a previous close of ₹3,115.95.
HSBC has reiterated a ‘Hold’ rating on L&T, setting a target price of ₹3,600, citing expectations of a strong Q4 performance. The brokerage expects broad-based growth across key verticals, particularly strength in the Projects & Manufacturing (P&M) segment, which is likely to offset any temporary softness in services.
For FY26, HSBC forecasts:
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7–10% order inflow growth
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15%+ revenue growth
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30–40 basis point improvement in EBITDA margins in the P&M segment
The stock currently trades at approximately 19x FY27E price-to-earnings, indicating that while some optimism may be priced in, there remains scope for upside depending on the company’s forward-looking commentary and execution track.
Investor sentiment has also been buoyed by expectations of a strong domestic capex cycle, government infrastructure push, and healthy execution levels in L&T’s core businesses.
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.
