Motilal Oswal's research report on Larsen and Toubro
Our recent meeting with LT reinforces our thesis that execution growth will remain strong for the company over the next few years, driven by a strong order book. The company is selectively eyeing projects from domestic markets and expects international ordering to keep supporting growth. Though lower oil prices can impact decision-making in international projects in the near term, LT’s focus on gas, renewable and maintenance capex of existing oil fields will keep driving the inflows. LT is also focusing on next phase of Lakshya for FY26-31 and while remaining focused on EPC, company is focusing on growing these four new businesses which were seeded during Lakshya 2026 – real estate, semiconductor, green energy and data centre and will grow these in future.
Outlook
We maintain our estimates for LT and reiterate our BUY rating with an SoTP-based TP of INR4,300, valuing core E&C at 28x Sep’27E EPS.
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