There is a great opportunity for investors in the shares of Larsen & Toubro (L&T). JP Morgan has initiated coverage on L&T’s shares, giving it an ‘overweight’ rating and setting a target price of ₹4,360, which is 23% higher than the current price. The company’s core revenue is expected to grow by 16% over the next few years, indicating strong future performance. Additionally, L&T has recently started work on several important projects that are expected to further increase its profitability.
Highlights:
- JP Morgan gave an ‘overweight’ rating to L&T, with a target price of ₹4,360 per share.
- L&T’s core revenue is expected to grow by 16% in the coming years.
- Core margins are projected to increase by 60 basis points between FY2024 and FY2027.
- L&T received a ₹1,000 crore order from RCF for a 1,200 MTPD complex fertilizer plant.
- L&T shares have risen by 23% over the past year, with the market cap nearing ₹5 lakh crore.
| Key Points | Details |
|---|---|
| Market Cap | ₹499,886 crore |
| Share Price | ₹3,552.75 |
| 52 Week High | ₹3,919.90 |
| 52 Week Low | ₹2,856.15 |
| 1 Month Return | 2.99% |
| 1 Year Return | 14.53% |
| 5 Year Return | 145.39% |
JP Morgan Report: Big Potential in L&T Shares
JP Morgan has a positive outlook on L&T’s shares. They believe the company’s core revenue could grow by 16% over the next few years, which could lead to solid returns for shareholders. According to the report, the company’s core margin is expected to expand by 60 basis points between FY2024 and FY2027, which will improve the earnings per share (EPS).
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Target Price of ₹4,360 for L&T
JP Morgan has initiated coverage on L&T’s shares, assigning an ‘overweight’ rating and setting a target price of ₹4,360 per share. This is 23% higher than the current market price. JP Morgan believes that L&T’s strong order book, diversified business, and solid financial position make it a safe and profitable investment in the Indian stock market.
Order Book: Major Contract from RCF
Recently, L&T received a significant order from Rashtriya Chemicals and Fertilizers Limited (RCF) to set up a 1,200 MTPD complex fertilizer plant worth ₹1,000 crore. The project will be executed on a lump sum turnkey (LSTK) basis, and the construction is expected to be completed within 27 months. This project will further strengthen the company’s order book and be a major contributor to its future revenue growth.
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Financial Position and Recent Performance
L&T’s shares have risen by 23% in the last year. On October 14, the stock saw a 2.6% rise, reaching ₹3,573.75. However, it closed the day at ₹3,553.35. Currently, L&T’s market cap is nearing ₹5 lakh crore.
L&T’s Stock Performance (As of October 2024):
- Market Cap: ₹499,886 crore
- Share Price: ₹3,552.75
- 52 Week High: ₹3,919.90
- 52 Week Low: ₹2,856.15
- 1 Month Return: 2.99%
- 1 Year Return: 14.53%
- 5 Year Return: 145.39%
Future Prospects and Investment Benefits
L&T’s strong order book, financial stability, and rapidly growing core revenue suggest that shareholders can expect good returns in the future. Additionally, JP Morgan’s target price and ‘overweight’ rating further indicate the potential for significant growth in L&T’s shares.
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FAQs:
1. What is JP Morgan’s target price for L&T shares?
JP Morgan has set a target price of ₹4,360 for L&T shares.
2. How much growth is expected in L&T’s core revenue?
L&T’s core revenue is expected to grow by 16% over the next few years.
3. What major order has L&T recently secured?
L&T has secured a ₹1,000 crore order from Rashtriya Chemicals and Fertilizers Limited (RCF) to set up a 1,200 MTPD complex fertilizer plant.
4. What is the current share price of L&T?
L&T’s current share price is ₹3,552.75.
5. What is L&T’s 5-year return?
Over the last 5 years, L&T has delivered a return of 145.39%.
