Published 10:35 IST, December 24th 2024

L&T Share Price Target 2025: Rs 8.04 Lakh Crore Orderbook – Buy, Sell Or Hold?

Domestic brokerage firm Sharekhan remains bullish on L&T, citing strong execution capabilities and margin recovery prospects.

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Larsen & Toubro

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Larsen & Toubro

L&T Share Price Target: Shares of Larsen & Toubro (L&T) gained 1.6 per cent on Monday, reaching an intraday high of Rs 3,690 on the BSE. The stock rallied after the company secured a significant contract from the Ministry of Defence for supplying K9 Vajra-T Artillery Platforms to the Indian Army.  

Last year, the share of the company surged over five per cent while its year-to-date (YTD) returns stand close to four per cent. The company has a strong foothold in the sector with a strong order book of nearly 8.04 lakh crore with future order prospects included. 

L&T Share Price Target for 2025: Buy, Sell, or Hold?  

Domestic brokerage firm Sharekhan remains bullish on L&T, citing strong execution capabilities and margin recovery prospects. The brokerage firm has given a ‘Buy’ rating to the stock with a target price of Rs 4,550 against the current market price of Rs 3,645. 

 Why Sharekhan Is Optimistic About L&T?  

Infrastructure Leadership: L&T’s leadership in the engineering, procurement, and construction (EPC) sector positions it as a major beneficiary of the government’s infrastructure push and private sector capex revival.  

Strong Order Book: With an order book of approximately Rs 5.1 lakh crore (2.2 times trailing twelve-month revenue) and future order prospects worth Rs 8.04 lakh crore, the company is well-positioned for strong execution.  

Margin Recovery: Easing supply chain constraints, stabilising commodity prices, and higher-margin projects are expected to drive margin improvement from FY2025.  

Diversification: L&T’s focus on emerging sectors such as green hydrogen, data centres, e-commerce, and defence enhances its growth potential.  

Capex Cycle Upswing: The ongoing capex cycle is expected to boost return ratios, further strengthening the company’s financial outlook.  

With its diversified offerings and favourable industry trends, L&T is well-placed to capitalise on opportunities in both domestic and international markets. Sharekhan maintains a “Buy” rating on the stock with a price target of Rs 4,550, reflecting strong execution potential and margin tailwinds.

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Updated 10:35 IST, December 24th 2024

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