Join WhatsApp Group for Free Stock Market Learning & Earning!
Shares of Larsen & Toubro (L&T) rose 2% today, hitting a high of ₹3,555 on the BSE, following a positive report from JP Morgan. The global brokerage firm has started coverage on L&T with an ‘overweight’ rating and set a target price of ₹4,360, suggesting a potential upside of 25%.
JP Morgan believes L&T is well-positioned to benefit from capital expenditure (capex) cycles in India and the Middle East. The firm highlighted that L&T’s current valuations are attractive and that the company is poised for strong earnings growth.
According to JP Morgan, an increase in profit margins for Plant and Machinery (P&M) is expected to support earnings growth, with an estimated 16% core revenue growth and a 60 basis points core margin expansion from FY24 to FY27.
Over the past year, L&T’s shares have increased by 14.7%, but they have remained flat this year. However, they have shown negative returns of 3.6% in the last six months and 2.85% over the past three months, based on BSE data.
From a technical perspective, L&T’s stock is currently trading below all its significant moving averages (10, 20, 50, 100, and 200-day). The Relative Strength Indicator (RSI) is around 44, indicating a mid-range position.
In its latest quarterly report, L&T announced a 12% year-on-year increase in its consolidated net profit, reaching ₹2,786 crore for the first quarter ended June 30, 2024. Revenue from operations also grew by 15% year-on-year to ₹55,120 crore.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
Join WhatsApp Group for Daily Webinars & Live Sessions!
