L&T shares in focus as Morgan Stanley maintains ‘overweight’ rating on infra major

L&T shares will be in focus in Tuesday’s session (June 25) after global brokerage Morgan Stanley maintained its ‘overweight’ call on the company with a target of Rs 3857, signifying a potential upside of nearly 9 per cent.

On the previous day, the stock ended marginally higher by 0.34 per cent at Rs 3,545 apiece on the BSE.

The brokerage said that the infrastructure major targets to achieve carbon neutrality by 2040 and expects its GHG emissions or greenhouse gas emissions to peak out by FY26.

Carbon-neutral (or carbon neutrality) is establishing a  balance between emitting carbon and absorbing carbon emissions from carbon sinks. Or in simple terms, to eliminate all carbon emissions completely. Further, the brokerage noted that the company sees its energy efficiency and decarbonizing energy uses to drive its net zero goal. It added that the company’s GHG emission intensity improved by as much as 12 per cent in FY24.

Also, it added that the company’s carbon footprint is due to diesel and electricity consumption.

Earlier on Monday, the company via an exchange filing informed that its  Power Transmission & Distribution (PT&D) vertical has won a domestic order to build a grid-connected 185MW Solar PV Plant along with a Battery Energy Storage System (BESS) having multitudes of MWh capacity. The Solar PV plant at Kajra in Lakshisarai district will be a key element in Bihar’s plans to harness renewable energy for sustainable energy solutions towards combating climate change and meeting demand growth.

Commenting on the order win, A Ravindran, Sr Vice President & Head of Renewable Strategic Business Group, PT&D, said: “This is a welcome addition to our Renewable EPC portfolio of 18 GWp (Gigawatt Peak) cumulative capacity, comprising solar and wind generation projects already commissioned and in the making. On the Battery Energy Storage System front, we handle more than 1.5 GWh of storage capacity. This rich experience has made us the EPC partner of choice for developers globally.”

L&T share price performance

Over the past one month, the stock has underperformed with a negative return of 3 per cent, while in the last one year it has zoomed 48 per cent as against Nifty which has climbed 26 per cent during the same period.