Buy Larsen & Toubro, target Rs 1,820: Anand Rathi

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26 Aug, 2025 12:21

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Anand Rathi

Larsen & Toubro reported a growth of 10.5 percent in its consolidated revenues at Rs 4,49,340 million in Q4-FY19 as against Rs 4,06,781 million in Q4-FY18.

The growth in revenues was driven primarily by better execution in Infrastructure segment, persistent growth in Hydrocarbon segment and improved performance in heavy engineering, Electric & Automation segments and services business.

On profitability front, the company’s consolidated operating margins stood 16.8 percent in Q4-FY19 at Rs 75,658 million as against 17.2 percent at Rs 69,892 million in Q4-FY18. The consolidated PAT margins for the company stood at 7.6 percent for the quarter at Rs 34,182 million as against 7.8 percent at Rs 31,675 million in Q4-FY18. The marginal decline in profitability was due to increase in materials and staff expenses.

For the full year, the company’s revenues grew 17.8 percent at Rs 1,410 billion in FY18 as against Rs 1,196 million in FY18. The operating margins for the company stood 16.8 percent at Rs 236 billion in FY19 against 16.4 percent at 16.4 percent. The PAT margins stood 6.3 percent in FY-19 against 6.2 percent in FY18.

We have incorporated the latest numbers to our models for the company and continue to remain positive for the company.

We maintain our BUY rating on the stock with a target price of Rs 1,820 per share.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​