L&T poised for order wins up to $15 billion, Investec says, projects 20% upside

Infrastructure and engineering conglomerate Larsen and Toubro Ltd. (L&T) are poised to win several, large, multi-billion-dollar contracts, brokerage firm Investec wrote in its note on Wednesday, October 8.

L&T is favourably placed to win orders between $10 billion to $15 billion, which includes the Yanbu Green Hydrogen project, Kuwait Gulf Oil order, Dorra Gas project and the Aramco Brownfield expansion, according to the Investec note.

As a result, the brokerage has maintained its "buy" recommendation on the stock with a price target of ₹3,736, which implies a potential upside of 20% from Tuesday's closing levels.

L&T has reportedly also won orders worth $2 billion recently, which includes the Sagazan renewable project in Uzbekistan, and an order for the Mumbai Metro 4 line, which it is yet to announce.

These orders offer strong order inflow visibility for L&T for the next few quarters and thus the brokerage said it finds the company well-placed to meet, and possibly beat, its order inflow guidance for the financial year 2026.

Investec said its recent visit to Saudi Arabia / UAE suggests order placement for L&T in the Middle East should stay strong as the momentum in the renewable and power T&D sectors is likely to sustain, while there should be a significant uptick in infra ordering.

From a medium-term perspective, Investec sees multiple large opportunities emerging in the Middle East for L&T. The company is the largest renewables EPC player in the region, and should continue to benefit from the region's thrust on renewables, it added.

L&T also features within Investec's "Q-Alpha BUY ideas' and 'FAST Long ideas'. At the current price, L&T's valuations of 23 times its estimated financial year 2027 core Earnings Per Share (EPS), is attractive, according to Investec.

Of the 33 analysts that have coverage on Larsen & Toubro, 27 have a "buy" rating, four have a "hold" rating and two have a "sell" rating.

L&T shares were up 0.5% at ₹3,749 apiece around 9.45 am on Wednesday. The stock has gained 18.6% in the last six months.

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