Accumulate Larsen & Toubro; target Rs 1175: Dolat Capital

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26 Aug, 2025 12:21

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Dolat Capital's report on Larsen and Toubro (L&T)

"L&T, growth in the Infrastructure segment and the corresponding improvement in the margins was the key highlight for the quarter. Revenues for the quarter grew 12 percent YoY on the back of 23 percent YoY growth in the Infrastructure segment. Infrastructure segment contributed 61 percent of Q3FY13 revenues and 58 percent of 9mFY13 revenues. Apart from Infrastructure, Heavy engineering also reported a strong growth (28 percent YoY) in revenues for the quarter. Other segments being exposed to Power generation/ private sector capex showed a decline in revenues – in line with our expectations.

Valuation: "L&T continues to benefit with its diversified presence across various verticals of the infrastructure sector. The same has kept it in good stead when all other infrastructure companies are facing headwinds in gaining traction in order flows. Contrary to consensus estimates the company has maintained its margins in the infrastructure orders. We believe L&T's ability to grow its order book while maintaining its margins is likely to keep the stock in good humour. Adjusting for the value of subsidiaries, the stock trades at a FY15 P/E multiple of ~14x. We maintain our Accumulate rating on the stock with a target price of Rs 1175," says Dolat Capital research report.

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