L&T shares end volatile session mildly higher after strong Q3 results — here’s what brokerages suggest

Larsen & Toubro (L&T) shares finished a volatile session with a mild gain on Tuesday, after the construction major a strong set of financial results for the October-December period. The L&T stock ended higher by Rs 10.5 or 0.5 per cent at Rs 2,125.1 apiece on BSE, having gyrated in a Rs 65 range around the flatline in intraday trade, touching levels of Rs 2,139 and Rs 2,073.9 apiece at the strongest and weakest levels of the day respectively. 

After market hours on Monday, the company reported a net profit of Rs 2,553 crore for the three-month period, up 24 per cent compared with the corresponding period a year ago, and growth of 17 per cent in revenue to Rs 46,390 crore. 

L&T, however, reduced its cut core margin guidance to 8.9 per cent from 9.5 per cent.

“We are well positioned to meet the guidance and likely to exceed it provided the current order flow momentum of the first three quarters continues in the last quarter of this fiscal (year),” L&T CFO R Shankar said on a conference call.

What brokerages say on L&T after construction major's Q3 results

L&T reported an order book of Rs 3,72,381 crore, suggesting good revenue visibility in the coming years, ICICI Direct Research said in a report. The brokerage maintained a ‘buy’ rating on the stock with a target price of Rs 2,795 apiece, which implies an upside of 32 per cent from Monday’s closing price.

CLSA, Goldman Sachs, Jefferies, Citi and Nomura maintained a ‘buy’ call each.

L&T share price history

L&T shares have gained nearly 11 per cent in value in the last one year, a period in which the Sensex index has risen 1.2 per cent. 

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