Larsen & Toubro stock maintains Overweight rating at JPMorgan on strong orders

Published 30/07/2025, 17:32
Larsen & Toubro stock maintains Overweight rating at JPMorgan on strong orders

Investing.com - JPMorgan has reiterated an Overweight rating on Larsen & Toubro (NSE:LART) Ltd. (NS:LT) (OTC:LTOUF) with a price target of INR4,240.00 following the company’s strong quarterly performance.

The engineering and construction giant reported first-quarter FY26 project and manufacturing order inflows of approximately Rs766 billion, representing 41% year-over-year growth and exceeding JPMorgan’s estimate of Rs572 billion by 34%.

The strong order intake does not include a large order exceeding Rs150 billion announced on July 29, 2025, or a build-operate-transfer green hydrogen plant. The company also secured an order from a domestic independent power producer for boiler turbine generators that could not be announced separately due to lack of customer approval.

L&T’s first-quarter project and manufacturing EBITDA margin held steady at 7.6% year-over-year, with slight compression in Infrastructure and Energy segments attributed to cost pressures in water projects and competitively priced international bids, respectively.

The company maintained its FY26 guidance across all parameters, including project and manufacturing margins of 8.3%-8.5%, while reporting strong cash flows, decade-low working capital, and consolidated return on equity reaching 17%.

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.