Shares of Larsen and Toubro (L&T) climbed 1.6 percent to Rs 3,499 apiece on March 27 after global brokerage BNP Paribas reaffirmed its "outperform" rating on the stock, expressing confidence that the current calendar year will be stronger than the last.
Over the past month, shares of this capital goods giant have gained significant traction, surging 8 percent, compared to a 5 percent rise in the benchmark Nifty 50 index.
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Adding to its momentum, L&T recently secured an ultra-mega offshore contract for the "North Field Production Sustainability Offshore (Hydrocarbon) Compression Project (NFPS COMP 4)" from global LNG leader QatarEnergy. This deal marks the largest single contract ever awarded to the Indian conglomerate.
The scope of work under this landmark contract is extensive, covering engineering, procurement, fabrication, installation, and commissioning of two massive offshore compression complexes.
Each complex will feature large offshore platforms equipped with compression and power generation facilities, living quarters, flare platforms, interconnected bridges, and other crucial infrastructure. The entire project will be executed approximately 80 kilometers off the northeast coast of Qatar.
Analysts at BNP Paribas highlighted that CY25 has started on a strong note, with the QatarEnergy order alone exceeding $4 billion. The brokerage remains optimistic about L&T’s financial outlook, maintaining its core FY26/27 EBITDA estimates while valuing the stock at 19 times its projected FY27 earnings per share (EPS).
BNP Paribas reiterated L&T as its top pick, dismissing concerns over a potential oil-driven slowdown in GCC (Gulf Cooperation Council) project tendering as overblown.
Looking ahead, Goldman Sachs expects L&T to deliver a robust performance in the March quarter.
The brokerage anticipates core revenue for Q4 to grow by 18 percent, while overall revenue is expected to rise by 17 percent compared to the same period last year.
Moreover, Goldman Sachs noted that L&T’s order inflows have grown by 11 percent year-on-year, positioning the company to exceed its guidance on both revenue and order flow.
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