Buy Larsen and Toubro; target of Rs 3806: Geojit Financial Services

Geojit Financial Services research report on Larsen and Toubro

Larsen & Toubro Ltd (L&T) is an engineering & construction (E&C) conglomerate with presence in IT and financial services sectors and operations in more than 30 countries. In Q4FY24, consolidated revenue grew 15.0% YoY to Rs. 67,079cr, led by broad based growth across segments. EBITDA margin shrank 90bps YoY owing to higher cost of materials. Healthy order book, strong execution capabilities, higher traction in hydrocarbon segment and increased capex spends by the government auger well for the company’s future performance.

Outlook

Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 3,806 based on sum-of-the-parts (SOTP) valuation.

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