Is there more steam left in L&T shares? Here is what brokerages suggest

L&T shares price target: Citi has maintained a buy stance on Larsen & Toubro. The global brokerage has raised the target to Rs 4,000 from Rs 3,550, translating an upside of nearly 29 per cent from the closing on Friday of Rs 3,109.2 on NSE.

L&T shares price target: Citi has maintained a buy stance on Larsen & Toubro. Image: Pixabay/ Representational Image

L&T share price NSE, L&T shares price target: Construction and engineering conglomerate Larsen & Toubro (L&T) shares have surged nearly 49 per cent so far this calendar year, outperforming the domestic equity benchmark Nifty, which has gained over 11 per cent in the same period. The counter is currently trading near its 52-week high of Rs 3,197.95, clocked in the previous session.

L&T shares price target

Citi has maintained a buy stance on Larsen & Toubro. The global brokerage has raised the target to Rs 4,000 from Rs 3,550, translating an upside of nearly 29 per cent from the closing on Friday of Rs 3,109.2 on NSE. Citi says that the company remains its top pick given the continued strong capex growth in India and the stronger capex growth in the Middle East.

Larsen & Toubro has increasing visibility on the Government of India’s capex programme over the next few years and is also exhibiting strong execution capabilities, the brokerage said in its note.

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Strong execution capabilities are evident from very large order wins in the Middle East and India, the brokerages added. Citi believes the company is nearing the end of margin pressure due to legacy pre-COVID orders and is set to see strong earnings growth over the next few years. Moreover, Nomura, too, has retained its buy call with a target price of Rs 2,770.

L&T Q2 results: Here is how it fared in the second quarter

L&T reported a 44.5 per cent increase in its consolidated net profit to Rs 3,222.63 crore for the quarter ended September 30, 2023. The consolidated income of the company during July–September 2023 increased to Rs 52,157.02 crore from Rs 43,501.14 crore logged in the year-ago period. Read more

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