JPMorgan has raised its price target on Larsen and Toubro (L&T) to ₹5,060 per share from the previous ₹4,570, representing a 21.3% upside from the previous closing price. According to reports from CNBC TV18, this marks L&T's highest price target on the street and the first and only one above ₹5,000. The brokerage maintains an "overweight" rating on the infrastructure conglomerate. As per latest reports, L&T shares were trading at ₹4,215 in morning trade, up 1.1% for the day and among the top gainers on the Nifty 50 index. The stock has gained about 9.1% over the last three sessions, including a 4.9% jump on Friday and a 3% rise on Monday, taking its market capitalisation above ₹5.8 lakh crore.
L&T has demonstrated strong execution under its strategic plan Lakshya26, which covered the 2021-2026 period. As reported by CNBC TV18, the company's order inflows grew at 20% compound annual growth rate (CAGR) compared to the target of 14%, while revenue increased at 16% CAGR against the target of 15%. The company's consolidated return on equity (RoE) reached 16.6% in FY26 compared to 10% in FY21, though this fell short of the 18% target. According to JPMorgan, the brokerage highlighted a sharp improvement in profitability and capital efficiency, with the company's consolidated return on equity (RoE) rising to 16.6% in FY26 from 10% in FY21, approaching the company's long-term target of 18%.
Building on its success, L&T has entered the current five-year strategic plan Lakshya31, spanning 2026 to 2031. According to CNBC TV18, the company is targeting 10%-12% CAGR in order inflow and revenue CAGR of 12%-15% during this period, with consolidated return on equity ranging between 16% to 17%. The brokerage noted that with the reopening of the Strait of Hormuz, the tail risk to the FY27 guidance has been removed, with L&T maintaining healthy guidance for 10%-12% growth in operating income and revenue. As per JPMorgan, the company's FY27 guidance remains strong, with management targeting 10-12% year-on-year growth in both order inflows and revenue. The brokerage added that further upside could emerge from higher oil and gas capital expenditure in West Asia and faster infrastructure spending linked to regional reconstruction activity.
The optimism comes amid improving sentiment towards L&T's international business, particularly in West Asia, which remains a key market for the company across energy, infrastructure, renewables and technology segments. According to JPMorgan, international orders accounted for 55% of the company's total order inflow during the first nine months of FY26, while international revenues contributed 54% of total revenue during the period. The stock had rallied sharply on Friday after reports of a potential US-Iran agreement helped ease concerns over geopolitical tensions in the region, a key market for L&T's overseas operations. L&T has previously highlighted the Gulf Cooperation Council (GCC) region as a major growth driver, supported by investments in artificial intelligence infrastructure, data centres and large-scale urban development projects in Saudi Arabia and the UAE.
L&T shares ended the previous session 3% higher at ₹4,171 and have seen a near 10% surge over the last two sessions, according to CNBC TV18. Of the 33 analysts covering the stock, 26 have a 'buy' rating, six have a 'hold' rating, and one has a'sell' rating. The stock now trades 0.7% higher on a year-to-date basis. Recent market developments show Sensex rising 296 points to 76,560.37 and Nifty advancing 75 points to 23,929.55 as optimism over US-Iran peace talks pushed crude oil prices lower, benefiting India as one of the world's largest crude importers.
