L&T Shares Rise Most In Four Months As Analysts Remain Bullish After Q3 Results
Traffic passes a construction site for by Larsen & Toubro Ltd. in Lucknow, Uttar Pradesh, India (Photographer: Prashanth Vishwanathan/Bloomberg)  

L&T Shares Rise Most In Four Months As Analysts Remain Bullish After Q3 Results

Shares of Larsen & Toubro Ltd. gained the most since Sep. 23, 2019 as most analysts maintained their stance on the stock after the company’s December quarter results.

L&T’s third-quarter operating profit missed estimates as order execution remained muted amid state elections and a slowing economy. Still, the infrastrucutre major maintained the order inflow guidance at 10-12 percent for the year and revenue growth guidance at 12-15 percent.

Here is what brokerages have to say on L&T’s Q3 results:


  • Maintain ‘Buy’; Hike target price to Rs 1,575 from Rs 1,559.
  • Q3 results reflect concern on near-term slowdown from slowing government spending.
  • Order book growth in infra segment was positive, though sustenance in FY21 is the key.
  • L&T remains well-placed to benefit from the continued infra spends in India.


  • Maintain ‘Buy’ with target price of Rs 1,950.
  • Short-term disruptions mar performance; sanguine prospects.
  • Focus on cost, cash and diversification paying off.
  • Maintain L&T as industrials top idea despite the Q3 earnings miss.


  • Maintain ‘Buy’ with target price of Rs 1,715.
  • Third-quarter core revenue weakens on execution headwinds.
  • Order inflows remain robust; stable working capital levels lead to strong cash generation.
  • Improvement in core Ebitda margin a key positive.

Morgan Stanley

  • Maintain ‘Overweight’; Cut target price to Rs 1,556 from Rs 1,753.
  • Q3 was below expectations but expect a stronger Q4.
  • Execution and liquidity-related challenges in some states affected revenue growth.
  • Execution challenges are receding, cash flows should seasonally improve in Q4.
  • Domestic prospect list is strong and E&A deal is likely to close shortly.


  • Maintain ‘Buy’ with target price of Rs 1,600.
  • Q3 performance reflective of resilience of the business model.
  • Despite Q3 print, management maintained revenue and order inflow guidance.
  • Domestic awarding outlook reasonable in the light of L&T's ask.
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