Engineering and construction major Larsen & Toubro Ltd.’s target price was trimmed by Bernstein to Rs 4,637 on Wednesday while reiterating an ‘Outperform’ rating on the counter, citing near‑term disruptions from geopolitical tensions in the Middle East but maintaining confidence in the company’s long‑term growth story.
Bernstein noted that this is only the second time in the past four years that it has reduced its target for L&T, underscoring the brokerage’s historically constructive stance on the company. The revision reflects heightened near‑term risks rather than any structural change in L&T’s business outlook. According to the brokerage, L&T has continued to outperform expectations on key parameters such as order inflows and return on equity, even as it operates at scale across multiple geographies.
In the near term, Bernstein flagged limited room for further upside as operational challenges could emerge from ongoing disturbances in the Middle East, where roughly 37 per cent of L&T’s order book exposure is concentrated.
Larsen and Toubro share price gained 3.6 per cent to hit an intraday high of Rs 4,097 apiece, it later pared some gains to trade higher at Rs 4,076 apiece, up 3.10 per cent as of 11:40 AM.
L&T’s share price has delivered a strong outperformance across key time frames compared with the benchmark Nifty 50. Over the past week, the stock gained 1.85 per cent, outpacing the index’s 0.84 per cent rise. The rally has been sharper over the past month, with L&T surging 18.64 per cent, far ahead of the Nifty 50’s 4.53 per cent gain.
On a longer-term basis, L&T’s stock is marginally lower year‑to‑date at 1.46 per cent, it has still fared better than the Nifty’s 7.45 per cent decline. Over one year, L&T has climbed 25.25 per cent, compared with 3.73 per cent gain for the index. The outperformance widens further over extended periods, with returns of 80.63 per cent over three years and 196.80 per cent over five years, above the Nifty 50’s 35.74 per cent and 65.96 per cent, respectively.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
