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What is the story about?
Shares of Larsen and Toubro Ltd. (L&T) have entered "bear market territory" in technical terms, as the stock is down more than 20% from its 52-week high.
L&T shares declined nearly 4% on Thursday, April 2. The stock has declined for three out of the last four trading sessions. It has also dropped 14.3% in the past month. It was among the worst-performing large cap stocks in March.
The stock has declined 18.9% ever since the Iran war started on February 28, 2026. The Iran-US-Israel war, which has entered its second month, spread rapidly in West Asia as Iran attacked its neighbouring countries in the Gulf region.
L&T, India's largest infrastructure company, has significant exposure to West Asia. As much as 49% of the company's consolidated order book was from its international business. Of this, more than 80% came from UAE, Saudi Arabia and the Gulf region.
Last week, it provided an update on the same as well. It said it has a presence in UAE, Saudi Arabia, Kuwait, Qatar, Oman and other regions in the Gulf.
L&T said it has 100 sites operating in the region in all segments. Of these 95% are business as usual, while 5% of the sites in West Asia are suspended or disrupted.
L&T added that logistics and supply chain are a challenge as supplies from Europe and China have been disrupted. The company said it is not facing any issues related to collections.
It said its future opportunities included --
Brokerage firm Macquarie said it is positive on the stock after the company provided its update on its exposure to West Asia. It is "overweight" on L&T and has a price target of ₹4,910 per share. It said it sees after the stock's correction, it saw significant value at the present levels.
Last month, UBS said it had a "neutral" rating on L&T and it revised its price target to ₹4,150 from ₹4,500. It said that while L&T's exposure in West Asia is skewed for priority segments, its non-energy infrastructure could be at risk. It also highlighted issues in domestic execution for the firm.
Of the 34 analysts who have coverage on L&T, 29 have a "buy" rating, four have a "hold" rating and one has a "sell" rating.
Shares of L&T are currently trading 2.9% lower on Thursday at ₹3,504.7. The stock is down 22% from its 52-week high of ₹4,440.
Also Read: Nifty Pharma index drops 3% as US tariff fears hit Sun Pharma, peers
L&T shares declined nearly 4% on Thursday, April 2. The stock has declined for three out of the last four trading sessions. It has also dropped 14.3% in the past month. It was among the worst-performing large cap stocks in March.
The stock has declined 18.9% ever since the Iran war started on February 28, 2026. The Iran-US-Israel war, which has entered its second month, spread rapidly in West Asia as Iran attacked its neighbouring countries in the Gulf region.
Exposure to West Asia and outlook
L&T, India's largest infrastructure company, has significant exposure to West Asia. As much as 49% of the company's consolidated order book was from its international business. Of this, more than 80% came from UAE, Saudi Arabia and the Gulf region.
Last week, it provided an update on the same as well. It said it has a presence in UAE, Saudi Arabia, Kuwait, Qatar, Oman and other regions in the Gulf.
L&T said it has 100 sites operating in the region in all segments. Of these 95% are business as usual, while 5% of the sites in West Asia are suspended or disrupted.
L&T added that logistics and supply chain are a challenge as supplies from Europe and China have been disrupted. The company said it is not facing any issues related to collections.
It said its future opportunities included --
- Green hydrogen, green ammonia and electrolysers.
- Renewables EPC.
- Offshore wind in Europe.
- Thermal/nuclear/coal gasification.
Latest brokerage views
Brokerage firm Macquarie said it is positive on the stock after the company provided its update on its exposure to West Asia. It is "overweight" on L&T and has a price target of ₹4,910 per share. It said it sees after the stock's correction, it saw significant value at the present levels.
Last month, UBS said it had a "neutral" rating on L&T and it revised its price target to ₹4,150 from ₹4,500. It said that while L&T's exposure in West Asia is skewed for priority segments, its non-energy infrastructure could be at risk. It also highlighted issues in domestic execution for the firm.
Of the 34 analysts who have coverage on L&T, 29 have a "buy" rating, four have a "hold" rating and one has a "sell" rating.
Stock performance
Shares of L&T are currently trading 2.9% lower on Thursday at ₹3,504.7. The stock is down 22% from its 52-week high of ₹4,440.
Also Read: Nifty Pharma index drops 3% as US tariff fears hit Sun Pharma, peers
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