Larsen & Toubro Shares Hit 10-Month High on Jefferies Price Target Hike

Larsen & Toubro Shares Hit 10-Month High on Jefferies Price Target Upgrade

Larsen & Toubro (L&T) shares surged on October 15, hitting a 10-month high of Rs 3,841.4 on the NSE, up 2.6%, following a price target upgrade by global brokerage Jefferies. The stock is now just 3% below its all-time high of Rs 3,963.5.

Jefferies retained its “buy” rating on L&T, raising the price target to Rs 4,345 from Rs 4,230, citing strong revenue, order flow, and margin guidance for FY26.

“L&T is on track to achieve or exceed FY26 revenue, order flow, and margin guidance. Strong growth visibility with conservative guidance should continue to support L&T stock,” Jefferies said.

So far in 2025, L&T shares have gained 6.5%, reflecting steady investor confidence in the company’s long-term growth trajectory.

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L&T Bags Large Grid Infrastructure Orders in Middle East

Adding to positive sentiment, L&T’s Power Transmission & Distribution (PT&D) vertical secured multiple “large” orders in the Middle East, each valued between Rs 2,500 crore and Rs 5,000 crore, according to the company’s regulatory filing.

One of the key projects involves a 400 kV super grid interconnection linking electricity networks of GCC member states. This interconnection aims to enhance grid efficiency, optimize generation capacity, and improve overall resilience. Currently, Oman’s grid connects to the UAE at 220 kV. L&T has been awarded the contract to engineer, procure, and construct a 400 kV substation in the UAE for a direct high-voltage link.

In addition, L&T PT&D has secured another order for constructing 132 kV substations in the Middle East to support rising electricity demand.

Saudi Arabia Transmission Project Boosts L&T Prospects

L&T also won a turnkey contract in Saudi Arabia for 380 kV overhead transmission lines, designed to integrate renewable energy power plants into the national grid. Analysts said these projects underscore L&T’s strong international order book and long-term revenue visibility, which has been a key factor behind the stock’s rally.

Jefferies Upgrade Reflects Strong Fundamentals

Jefferies highlighted that conservative guidance combined with strong growth visibility is driving investor confidence in L&T. The company’s diverse portfolio across engineering, procurement, construction, hi-tech manufacturing, and services, spread over multiple geographies, has positioned it as one of India’s leading multinational corporations with a market valuation of around $30 billion.

“L&T’s consistent order inflows, especially in the Middle East, and strong project execution capability are likely to support stock performance in FY26 and beyond,” Jefferies noted.

L&T Stock Outlook

Market experts said L&T’s stock could continue to trend higher if the company maintains strong execution, secures further large-scale orders, and meets its FY26 guidance. Analysts expect investor sentiment to remain positive, supported by global infrastructure demand and robust domestic operations.

L&T’s recent projects in high-voltage grid interconnections and renewable integration highlight its growing role in critical infrastructure and sustainable energy solutions, making it a key pick for long-term investors.

Highlights

• Stock Performance: L&T shares rose 2.6% to Rs 3,841.4, a 10-month high.

• Jefferies Rating: Buy rating retained; price target raised to Rs 4,345.

• Middle East Orders: Includes 400 kV substation in UAE, 132 kV substations, and Saudi Arabia 380 kV transmission lines.

• Stock Gains: L&T stock up 6.5% YTD in 2025.

• Company Overview: $30 billion multinational engaged in EPC projects, hi-tech manufacturing, and services.

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