L&T share value jumps 5% after Q3 outcomes. Must you purchase, promote or maintain?

Larsen & Toubro (L&T) share value rallied practically 5% on Friday after the corporate reported respectable earnings for the third quarter of FY25. L&T shares surged as a lot as 4.95% to ₹3,588.85 apiece on the BSE.

Engineering main Larsen & Toubro posted a consolidated web revenue of ₹3,359 crore in Q3FY25, a progress of 14% from ₹2,947 crore within the year-ago quarter.

The corporate’s consolidated income in Q3FY25 elevated 17% to ₹64,668 crore led by robust order guide and ramp up in execution momentum throughout its Initiatives & Manufacturing (P&M) companies.

L&T mentioned it obtained its highest ever quarterly orders of ₹116,036 crore on the group degree through the quarter ended December 31, 2024, registering a considerable YoY progress of 53%. Worldwide orders at ₹62,059 crore through the quarter comprised 53% of the overall order influx.

The consolidated order guide of the group as on December 31, 2024, is at ₹564,223 crore, registering a progress of 19% over March 2024, with the share of worldwide orders at 42%.

Must you purchase L&T shares after Q3 outcomes?

Nuvama Institutional Equities mentioned that L&T delivered stellar Q3FY25 order inflows at ₹1.16 lakh crore (+53% YoY) after a sluggish H1FY25 together with strong core EPC execution (+20% YoY) with margins flat at ~7.6%.

It believes that core OPM could backside out at present ranges of ~8.2% with FY26E/27E having a path in the direction of 8.5–9% as extra tasks attain margin recognition milestones by subsequent 12 months.

“Nonetheless, we proceed to construct in ~8.2% core OPMs until FY27 together with 10–12% OI progress and 12–15% top-line progress, leaving room for additional upside. Administration commentary suggests giant ticket-size order inflows in Q4FY25, 4– 5 orders the place they’re nicely positioned (throughout Vitality, B&F, city infra, water, metals, and so on). Well timed execution of job work stays the important thing variable to observe,” Nuvama Equities mentioned.

The brokerage agency retained a ‘Purchase’ score on L&T shares on robust order guide and rising execution, although a margin uptick should still be a while away. It revised FY25E and FY26E earnings per share (EPS) estimates by -3% and 1% for an unchanged goal value of ₹4,000 per share, valuing the core enterprise at 25x FY27E EPS.

Palak Devadiga, Analysis Analyst, StoxBox, famous that Larsen & Toubro delivered a good working and monetary efficiency through the quarter.

“Whereas the corporate didn’t surpass road estimates, its strong order guide, record-high order inflows, and ramp-up in execution momentum bode nicely for future progress. The corporate anticipates that the Union Price range will prioritize infrastructure growth, expertise adoption, talent enhancement, and power transition insurance policies, which might additional drive financial momentum. L&T stands to learn from the federal government’s continued push in the direction of infrastructure developments and financial progress,” mentioned Devadiga.

In accordance with him, L&T has been performing nicely with improved operational effectivity and sustained digital adoption. Its robust near-term order prospects and confidence in sustaining progress momentum place it for continued success within the coming quarters.

At 9:45 AM, L&T shares had been buying and selling 2.83% increased at ₹3,516.45 apiece on the BSE. 

Disclaimer: The views and proposals made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to verify with licensed consultants earlier than making any funding choices.