Bluechip infra stock wooing bulls with attractive growth- valuations mix

Infra major heavyweight stock L&T is in focus as global brokerage JP Morgan has initiated its 'overweight' call on the stock. The target set by the brokerage is Rs 4,360, implying over 25 per cent potential upside.

The brokerage believes the infra bluechip company is ideally placed to navigate capex cycle in India and the Middle East.

In the previous day's trade, the stock ended at Rs 3,482 per share on the BSE.

The brokerage held that L&T trades at 25xFY26E core EPS with 23 per cent EPS CAGR over FY24-FY27E & 20%+ core RoCE, offering an attractive combination of growth at very reasonable valuations.

Bottoming out of P&M margin to provide a tailwind to earnings growth, added the brokerage.

Fast EPS growth will be driven by healthy core revenue growth of 16 per cent and 60bps core margin expansion over FY24-FY27.