L&T shares get their first price target above ₹5,000; Details, rationale here

Shares of Larsen and Toubro (L&T) Ltd. are in focus on Tuesday, June 16, after brokerage firm JPMorgan raised its price target on India's largest infrastructure conglomerate by 10% to above ₹5,000 apiece.

JPMorgan has an "overweight" rating on L&T and has raised its price target to ₹5,060 per share from the previous ₹4,570 apiece. It indicates an upside of 21.3% from its previous closing price.

This is L&T's highest price target on the street and the first and only one that is above the ₹5,000 level. JPMorgan's bullish stance also comes a day after the

stock turned positive for 2026, so far.

Why Is JPMorgan Bullish On L&T?

The brokerage said L&T has demonstrated solid delivery under it strategic plan Lakshya26, which comprised the 2021-2026 period. Its order inflows grew at 20% compound annual growth rate (CAGR) compared to the target of 14%. Meanwhile, its revenue increased at a 16% CAGR while the target was 15%, JPMorgan said.

L&T's consolidated return on equity (RoE) reached 16.6% in the financial year 2026 compared to 10% in FY21. The target was 18%.

Building on this success, the company has now entered the current five-year strategic plan Lakshya31, which will span over 2026 to 2031. L&T is aiming to deliver a 10%-12% CAGR in order inflow and a revenue CAGR of 12%-15% during this period with consolidated return on equity ranging between 16% to 17%.

With the reopening of the Strait of Hormuz, the tail risk to the FY27 guidance has been removed, JPMorgan said. L&T's guidance for FY27 is healthy with 10%-12% growth in operating income and revenue, along with margins, which will remain at the same levels of last year, at 8.6%.

In addition, L&T enjoys optionality from:

• An increase in capex in oil and gas in West Asia


• Acceleration in core infrastructure capex as re-construction opportunities in


• the West Asia region materialise, JPMorgan added.

Of the 33 analysts who have coverage on the L&T stock, 26 have a "buy" rating, six have a "hold" rating and one has a "sell" rating.

L&T shares ended the previous session 3% higher at ₹4,171 apiece. As a result of the near 10% surge seen by the stock over the last two sessions, it now trades 0.7% higher on a year-to-date basis.

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