CLSA maintains Larsen & Toubro Outperform rating and INR4,151 target

Published 28/03/2025, 08:22
CLSA maintains Larsen & Toubro Outperform rating and INR4,151 target

On Friday, CLSA analysts maintained an Outperform (2) rating on Larsen & Toubro (NSE:LART) Ltd. (LT:IN) (OTC: LTOUF), with a steady price target of INR4,151.00. The firm’s analysts highlighted the company’s significant role in the global energy sector, spanning the entire energy value chain, which includes renewables, green electrons to green molecules, gas, and thermal power. This expansive reach is expected to drive robust growth from an already high base.

Larsen & Toubro’s growth is attributed to its wide-ranging competencies, a focus on undertaking large and complex projects, and a strategic emphasis on ’greening’ its Engineering, Procurement, and Construction (EPC) portfolio. Analysts predict that energy could account for over 50% of the company’s backlog by the fiscal year 2025, potentially attracting the attention of India and global energy-focused funds. This interest is anticipated despite Larsen & Toubro not being listed on their benchmark indices.

The analysts also noted that Larsen & Toubro has achieved the right mix of relatively higher-margin gas/LNG orders with the relatively lower-margin and variable renewable contracts. This balance is expected to support the company’s blended margins. CLSA views Larsen & Toubro as offering relative value among Indian industrial companies, trading at a 17-194% discount on FY26 PE compared to its competitors, which could make it an attractive proposition for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.