JPMorgan has an “overweight” rating on L&T and has raised its price target to ₹5,060 per share from the previous ₹4,570 apiece. It indicates an upside of 21.3% from its previous closing price.
This is L&T’s highest price target on the street and the first and only one that is above the ₹5,000 level. JPMorgan’s bullish stance also comes a day after the stock turned positive for 2026, so far.
Why Is JPMorgan Bullish On L&T?
The brokerage said L&T has demonstrated solid delivery under it strategic plan Lakshya26, which comprised the 2021-2026 period. Its order inflows grew at 20% compound annual growth rate (CAGR) compared to the target of 14%. Meanwhile, its revenue increased at a 16% CAGR while the target was 15%, JPMorgan said.
L&T’s consolidated return on equity (RoE) reached 16.6% in the financial year 2026 compared to 10% in FY21. The target was 18%.
Building on this success, the company has now entered the current five-year strategic plan Lakshya31, which will span over 2026 to 2031. L&T is aiming to deliver a 10%-12% CAGR in order inflow and a revenue CAGR of 12%-15% during this period with consolidated return on equity ranging between 16% to 17%.
With the reopening of the Strait of Hormuz, the tail risk to the FY27 guidance has been removed, JPMorgan said. L&T’s guidance for FY27 is healthy with 10%-12% growth in operating income and revenue, along with margins, which will remain at the same levels of last year, at 8.6%.
In addition, L&T enjoys optionality from:
- An increase in capex in oil and gas in West Asia
- Acceleration in core infrastructure capex as re-construction opportunities in
- the West Asia region materialise, JPMorgan added.
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.
L&T shares were trading 0.9% up at ₹4,209 apiece at 9.20 am on Tuesday. As a result of the over 10% surge seen by the stock over the last two sessions, it now trades 1.7% higher on a year-to-date basis.
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