Order pipeline, margin gain positive for Larsen & Toubro shares

Investor sentiment for Larsen & Toubro (L&T) stock was positive following an ‘overweight’ rating from JPMorgan. JPMorgan’s price target implies a potential upside of nearly 25 percent from Friday’s closing price.

The brokerage believes the stock is attractively valued at 25 times estimated core earnings per share (EPS) for FY26. It estimates that earnings per share would grow at a compound annual growth rate (CAGR) of 23 percent in FY24-27, along with a core return on capital employed (RoCE) of 20 percent.

Earnings per share growth would be driven by revenue growth (approximately 16 percent per share).