The brokerage held a call with the heads of L&T’s Data Centre and EMS verticals on their new growth engines, which include their own IP-electronics manufacturing, collaborative robots, fabless semiconductor chips, high voltage direct current (HVDC) systems, fabrication yards for offshore winds, the green hydrogen ecosystem, nuclear scale-up and Make In India defence products.
According to CLSA, L&T intends to incubate these businesses with a capex of over $4 billion over financial year 2026-2031.
The company has already achieved some initial success, including building teams of over 400 semiconductor design engineers in India, and abroad, securing its first client win for EV Electronics, signing a deal with ITOCHU for the supply of green ammonia and progressing from co-location to sovereign cloud to an AI factory with Nvidia, CLSA noted in its note.CLSA highlighted the key differentiators of L&T’s strategy that could yield the next multi-billion dollar businesses, which include largely addressable markets, IP-led growth, focus on high-margin products and globally competitive businesses.
JPMorgan Upbeat As Well
Last week another brokerage firm JPMorgan raised its price target on L&T to above ₹5,000 per share. This is its first target price above ₹5,000.Of the 33 analysts who have coverage on the L&T stock, 26 have a “buy” rating, six have a “hold” rating and one has a “sell” rating.
Shares of L&T have opened with gains of 0.5% on Monday at ₹4,228. The stock has recovered all of its Iran war losses and also turned positive on a year-to-date basis.
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