L&T Share Price: After 4 days of decline, the shares of Larsen & Toubro (L&T), a major company in the engineering and infrastructure sector, saw a rise on Thursday…
highlights
- Larsen & Toubro shares saw a rise of about 2.5% after 4 days of decline.
- Motilal Oswal has maintained BUY rating on the company.
- However, the brokerage has reduced the target price from Rs 4600 to Rs 4400.
L&T Share Price: Shares of engineering and infrastructure giant Larsen & Toubro (L&T) saw a rise on Thursday after 4 days of decline. The stock rose about 2.5 percent during trading. Shares of Larsen and Toubro on Thursday rose by more than 2.5 per cent to reach an intraday high of Rs 3979.80. In recent times, pressure was seen on the stock due to increasing geopolitical tension in the Middle East, but some brokerage houses in the market still remain positive on this stock.
Motilal Oswal maintained BUY rating
Brokerage firm Motilal Oswal Financial Services has maintained its BUY rating on L&T. However, the brokerage has reduced the target price of the stock to Rs 4,400 from the earlier Rs 4,600. According to the brokerage, in the current situation the company faces some imminent challenges, but the company’s business structure and order book support it.
Read full article
The report said that the changing situation in the Middle East could impact the company’s core EPC business. Apart from this, changes related to Artificial Intelligence in IT business are also creating some risks. For this reason, the brokerage has slightly revised its view regarding the valuation of the company.
Big contribution of international business
According to the brokerage, international business accounts for a major share in the company’s core business revenue. L&T’s big business is spread abroad, especially the company has many projects going on in the countries of the Middle East. It has also been said in the report that growth is being seen in some segments of the company in the domestic market. Work on infrastructure and engineering projects continues in India, which is supporting the company’s domestic business.
changing business model
Motilal Oswal reports that the company’s business model is now gradually moving from a ‘sum-of-the-parts’ approach to a ‘moving parts’ approach. This means that the valuation of the company is being decided on the basis of the performance of different business segments. Changes related to Artificial Intelligence in IT business can also impact the valuation of subsidiaries. According to the brokerage, due to this, there may be fluctuations in the stock for some time.
Challenges remain in the near term
According to the brokerage report, some challenges remain in the near term and the situation is not completely clear. Especially the global geopolitical situation and rapid changes in the technology sector may have an impact on some business segments of the company. However, despite this, the brokerage has maintained BUY rating on the stock and has given a target price of Rs 4,400. The rise in the stock after the recent fall has again brought this stock into discussion in the market.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
related news
end of article
