Synopsis: JPMorgan raised its target price for Larsen & Toubro to a record over Rs. 5,000, citing strong execution under Lakshya26, improved profitability and RoE, growth prospects under Lakshya31, and reduced geopolitical risks.
The shares of this company are a multinational conglomerate specialising in engineering, procurement, and construction services, with operations across infrastructure, energy, defence, IT, and financial services in domestic and international markets, are in the spotlight after JPMorgan raised its target price to a record over Rs. 5,000 per share.
With a market capitalisation of Rs. 5,78,411 cr, the shares of Larsen & Toubro Ltd were trading at Rs. 4204.40 per share, increasing 2% in today’s market session, making a high of Rs. 4,235, up from its previous close of Rs. 4,171.45 per share.
Landmark Price Target for L&T
Shares of India’s largest infrastructure conglomerate, Larsen & Toubro (L&T) Ltd, surged after global brokerage firm JPMorgan raised its price target on the stock by 10%. The new target is set at Rs. 5,060 per share, indicating a potential upside of 20% from its current levels This marks the highest price target on the street for L&T and makes JPMorgan the first and only brokerage to project the stock past the Rs. 5,000 milestone.
Stellar Performance Under Lakshya26
JPMorgan’s optimistic outlook is heavily supported by L&T’s strong execution during its recently concluded five-year strategic plan, Lakshya26 (spanning 2021–2026). The company consistently outperformed its core targets such as order inflows growing at a compound annual growth rate (CAGR) of 20% against a 14% target, and revenues increased at a 16% CAGR compared to the 15% target. Furthermore, L&T significantly improved its capital efficiency, pushing its consolidated return on equity (RoE) up to 16.6% in FY26 from just 10% back in FY21.
Strategic Growth Horizons: Lakshya31
Building on its recent momentum, L&T has transitioned into its next five-year blueprint, dubbed Lakshya31 (spanning 2026–2031). For this upcoming period, the conglomerate aims to deliver a steady order inflow CAGR of 10%–12% and a revenue CAGR of 12%–15%. L&T is also targeting a consolidated return on equity ranging between 16% and 17%. For the immediate fiscal year (FY27), the company has provided a healthy guidance of 10%–12% growth in both operating income and revenue, with operating margins expected to hold steady at 8.6%.
Geopolitical Relief and Future Upside
A major catalyst for the stock’s positive outlook is the reopening of the Strait of Hormuz, which JPMorgan notes has effectively removed the tail risk to L&T’s FY27 guidance. Looking forward, the company holds significant growth optionality from two primary areas, including a projected increase in capital expenditure within the oil and gas sector in West Asia, and an acceleration in core infrastructure spending as massive reconstruction opportunities begin to materialize across the West Asian region.
Larsen & Toubro (L&T) is one of India’s largest multinational engineering and construction companies. L&T operates across sectors such as engineering, procurement and construction (EPC), infrastructure, high-tech manufacturing, information technology, energy, defence, and financial services.
It reported a steady financial performance in Q4FY26. Revenue increased by 11% year-on-year to Rs. 82,762 crore from Rs. 74,392 crore, reflecting strong business growth. EBITDA rose 5% to Rs. 10,419 crore. Net profit stood at Rs. 6,133 crore, broadly in line with the previous year’s Rs. 6,156 crore, while EPS declined slightly by 3% to Rs. 38.71 from Rs. 39.97.
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