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The stock is also in focus after the company won a favourable verdict in the ₹239 crore tax penalty case in Qatar, where the penalty was quashed in totality.
During its post-earnings call, the management reiterated its financial year 2025 guidance across metrics from order inflow to revenue and even core margins.
The core margin guidance was reiterated at 8.2%, but the December quarter core margin stood at 7.6%.Brokerage firm Morgan Stanley has an “overweight” rating on the stock, with a price target of ₹4,278. It said that there is a “reasonable likelihood” of the company exceeding its guidance for the full year.
The brokerage also said that it expects the market to look at shares of L&T “more favourably”, as despite the skepticism, the company has delivered on core revenue and steady margins.CLSA has an “outperform” rating on L&T with a price target of ₹4,151. It expects L&T’s margin to improve between financial year 2025 and 2027 on lower legacy orders and maturity of execution.
A rise in core E&C order flows and margins along with actions to improve return ratios will be key triggers for the stock going forward, the brokerage said.
Bernstein has an “outperform” rating on L&T with a price target of ₹3,922.
Out of the 35 analysts that have coverage on L&T, 31 of them have a “buy” rating on the stock, while two each have a “hold” and “sell” rating.
Shares of L&T are trading 4% higher post its results at ₹3,549. The stock is still 10% away from its recent peak of ₹3,963.
