L&T Share Price Edges Up 1% Amid Middle East Risks, Brokerages Maintain 'Buy' Recommendation

Larsen & Toubro (L&T) Stock Rises Despite Near-Term Risks in the Middle East

Key Points:

• L&T shares rose 1.25% in early trade on Thursday, trading at Rs 3,931.3.
• Brokerages maintain bullish calls, but with caution due to the company's exposure to the Middle East.

Market Analysis:

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L&T's earnings are expected to recover if regional disruptions ease. Brokerages largely retained a constructive stance on the stock despite trimming target prices. They said that temporary disruptions in the Middle East could weigh on execution but are unlikely to derail the company's long-term growth outlook.

Brokerage Views:

• Jefferies maintained a 'buy' call on L&T stock, but cut its target price to Rs 4,500 per share from Rs 4,715 earlier. The brokerage estimates that a one-month disruption to work in the region could reduce FY26 earnings per share by about 6-8%.
• Motilal Oswal also retained a 'buy' rating, while trimming its target price to Rs 4,400 from Rs 4,600. The brokerage estimates West Asia exposure at around 39-40% of L&T's order book.

Industry Outlook:

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Despite near-term concerns, analysts remain constructive on the broader capital goods cycle. CLSA highlighted L&T among its top picks in the capital goods space, citing strong backlog visibility and improving margin outlook due to easing input costs.

Company Performance:

• International orders stood at Rs 1.91 lakh crore for the nine months ended December 31, 2025, accounting for 55% of total order inflows.
• International revenues contributed 54% of total revenues.
• The stock remains up nearly 20% over the past year, outperforming the Nifty 50's roughly 9.6% gain during the same period.