CLSA has an “outperform” rating on the L&T stock with a price target of ₹4,842 apiece.
The brokerage in its note said that L&T is all set to win its fifth largest order as on Wednesday it emerged as the preferred bidder for a $3.7 billion power equipment bulk tender driven by NTPC to source 4.5 GW of equipment.
This order validates the thesis of strong central and state government company capex and L&T emerging as a global energy infrastructure builder with 54% of its orderbook coming from the energy domain.
CLSA added that this order should account for 6% of CLSA’s inflow estimates for the financial year 2027 and help mitigate the near-term slowdown in West Asia orders.
L&T beat BHEL to win the 3.2 GW of power projects to sustain its FY26 49% share in FY27 as well, according to the brokerage note. However, the company is yet to make an official announcement in this regard.
The spotlight has been on the L&T stock ever since the Iran war started due to the infrastructure company’s significant exposure to West Asia. This had resulted in the stock entering bear market territory.
As much as 49% of its consolidated order book was from its international business and of this, 80% came from Saudi Arabia, UAE and the Gulf region.
Two weeks ago, L&T had updated that 95% of its 100 operating sites in the region in all segments were business as usual, while 5% were either suspended or disrupted.
The stock surged as much as 8% on Wednesday, its biggest single-day gain since February 2021, and crossed the ₹4,000 mark after 20 trading sessions — as a result of the two-week ceasefire agreed to by Iran and the US.
Of the 34 analysts who have coverage on L&T, 29 have a ‘buy’ rating, four have a ‘hold’ rating and one has a ‘sell’ rating.
L&T shares ended the previous session 7.7% up at ₹4,010 apiece. The stock has recovered the previous month’s losses and is now up 4.4% in the past month but is down 3.2% this year, so far.
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