JM Financial stays bullish on L&T; sees buying opportunity on dips

Priyankar Biswas, Industrials and Logistics Research Analyst at JM Financial Institutional Securities, said Larsen & Toubro’s FY27 guidance may appear conservative initially, but much of the slowdown linked to geopolitical tensions in West Asia has been factored in.

JM Financial’s estimates remain broadly unchanged because a large part of L&T’s near-term earnings visibility comes from its existing order book, he added.

Biswas continues to remain positive on the stock from a medium- to long-term perspective. “If the stock, let's say moderates down to ₹3,900 levels, which can happen, then I would definitely say a very strong ‘buy’ at such levels,” he said.

L&T has guided for 10-12% consolidated revenue growth for FY27.

In the January–March quarter (Q4FY26), Larsen & Toubro reported revenue of ₹82,762 crore, margins of 10.4%, and a net profit of ₹5,326 crore.

The stock is currently trading at ₹3,910.10 as of 9:47 am on the NSE and has gained17% over the last year.

He also highlighted that the company’s order inflow guidance remains healthy despite concerns around West Asia. L&T has guided for 10-12% order inflow growth over the next several years, signalling that the broader tendering pipeline remains resilient.

On concerns around rising commodity prices and a possible slowdown in domestic project awarding, Biswas said the current situation is very different from the sharp inflationary shock seen in 2022.

He pointed out that government capital expenditure remained strong even during periods of elevated commodity prices, while domestic project competition has intensified over the years.He added that the key monitorable for investors remains the international business, especially the continuation of overseas order growth. According to management commentary, customer discussions are ongoing, payment cycles have improved, and newer contracts are expected to factor in prevailing cost levels.

For the entire discussion, watch the accompanying video

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