L&T shares get an upgrade from Goldman Sachs, price target raised by 34% to ₹5,000

Shares of Larsen & Toubro Ltd

. (L&T), India's largest infrastructure company has been upgraded by brokerage firm Goldman Sachs in its latest note on Friday, December 12.

Goldman Sachs has upgraded the stock to "buy" from its earlier recommendation of "neutral". It has also raised its price target on the stock to ₹5,000 from ₹3,730 earlier. The revised price target implies a potential upside of 25% from Thursday's closing price. Goldman Sachs' price target on L&T is the second highest on the street for the stock after ICICI Direct's ₹5,020.

The brokerage believes that L&T is poised for growth in the defence, green hydrogen and the nuclear power market.

For financial year 2026, L&T's Total Addressable Market, which stood at ₹1.4 lakh crore, will increase to ₹3.4 lakh crore by financial year 2035, Goldman Sachs wrote in its note.

Healthy order backlog and increased confidence in the domestic capex recovery also keeps Goldman Sachs bullish on L&T.

Goldman Sachs expects L&T's revenue to grow at a Compounded Annual Growth Rate (CAGR) of low-double-digits, while profits will grow in mid-teens CAGR over the next five years.

33 analysts have coverage on L&T, wherein 28 have a "buy" rating on the stock, three say "hold", while two have a "sell" rating on the stock. The consensus estimate of price targets implies a potential upside of 12.2% from current levels.

Shares of L&T ended 0.3% higher on Thursday at ₹4,003. The stock is up 9% so far in 2025.