Daijiworld Media Network - Mumbai

Mumbai, Oct 16: Global brokerage firm Jefferies has raised its target price for Larsen & Toubro Ltd. (L&T) to Rs 4,345 from Rs 4,230, maintaining a ‘buy’ rating on the stock and describing it as a “quiet outperformer” due to its consistent outperformance against the Nifty index over one- to five-year periods.

According to Jefferies, L&T has outperformed the Nifty index over the last six months, one year, and five years by margins ranging from 1% to 201%. The firm highlighted the company’s robust order book and forecast growth in revenue, margins, and order inflows for FY26, projecting a 20% growth in core Engineering & Construction (E&C) EBITDA — a notable increase from 16% observed between FY15 and FY19.

While acknowledging L&T’s guidance of flat margins in FY25, Jefferies termed it a cautious approach by the management. The brokerage expects continued strong domestic order inflows and stable overseas project performance, which could drive further upward revisions in profitability. L&T’s strong order book, particularly in the oil and gas segment, underpins Jefferies’ positive outlook.

Currently, L&T trades at a relative strength index (RSI) of 60, indicating neutral market sentiment. Of the 34 analysts covering the stock, 28 have a ‘buy’ rating, four recommend ‘hold,’ and two suggest ‘sell,’ according to Bloomberg. The average 12-month analyst target price stands at Rs 4,089, implying a potential upside of 7%.