L&T shares jump 4% on beat Q4 results: Should you buy, sell, or hold?

L&T shares have declined 5 percent so far this year

Shares of Larsen and Toubro (L&T) jumped 4 percent to Rs 3,460 on May 9 after the company posted a better-than-expected performance for the March quarter (Q4FY25). Brokerages remain optimistic about the stock and project nearly a 20 percent upside, as they believe L&T is well-positioned to benefit from a strong pipeline of upcoming orders.

Bernstein gave an "outperform" rating on L&T and set a target price of Rs 3,922 per share. The brokerage noted, "Order prospects of Rs 19 lakh crore compared to Rs 12 lakh crore provide good visibility for FY26."

Motilal Oswal also maintained a "buy" rating on the stock and set a target price of Rs 3,950 per share. The firm expects L&T to benefit from a large pipeline of potential orders and to continue maintaining healthy net working capital (NWC) and return on equity (RoE).

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“We expect L&T’s execution to remain strong given the robust order book. Accordingly, we have raised our inflow and execution estimates for the core Engineering and Construction (E&C) segment. However, due to a downward revision in estimates and valuation for IT subsidiaries, our target price is now Rs 3,950 (earlier Rs 4,100), based on 28 times estimated earnings for March 2027 for the core business, and applying a 25 percent holding company discount to subsidiaries,” the brokerage added.

After releasing its Q4 results, L&T’s management stated that they expect revenue to grow by 15 percent in FY26 compared to the previous financial year. With Q4 order inflows increasing by 24 percent, the company said the order pipeline looks strong, and it expects around 10 percent growth over the next 12 months.

For the quarter Lended March 2025, L&T reported a consolidated net profit of Rs 5,497 crore, marking a 25 percent increase from Rs 4,396 crore in the same period last year. Consolidated revenue rose by 11 percent to Rs 74,392 crore in Q4FY25, compared to Rs 67,079 crore in Q4FY24. L&T’s EBITDA margin for Q4FY25 stood at 11 percent, the same as in the year-ago quarter.

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