Larsen & Toubro share price tanked 5% to Rs 2,244 today after the company’s Q4FY23 results missed analysts’ expectations. The net profit rose 10% to Rs 3,986.78 in Q4FY23 crore from Rs 3,620.69 crore in the same quarter last year. The board has recommended a final dividend of Rs 24 per share of the face value of Rs 2 each. Meanwhile, L&T announced that AM Naik has decided to step down as the non-executive chairman of the company with effect from September 20, 2023. SN Subrahmanyan, the Chief Executive Officer & Managing Director, has been re-designated as the Chairman and Managing Director of the company with effect from October 1, 2023. L&T share price has fallen 2.5% in the past one month while the stock has jumped over 40% in the last one year.
Should you buy, sell or hold L&T stock?
Prabhudas Lilladher: Buy – Target: Rs 2615 (16.5% upside)
“We believe Larsen and Toubro is well-placed to benefit in the long run with strong tender prospects, better order conversion in the domestic market, significant traction in the hydrocarbon segment from the export market and an expected uptick in private capex. We revise our estimate by 0.6/-1.0 for FY24/25, factoring in lower margins in the P&M business in the short term. The stock is currently trading at PE of 26.7/22.7 FY24/25E,” said analysts at Prabhudas Lilladher. The brokerage maintains a ‘BUY’ rating with a revised SoTP of Rs 2,615.
Nuvama: Buy – Target: Rs 2750 (22.5% upside)
“We find Larsen & Toubro an attractive steady compounder (12–15% sales growth) with potential triggers of margin expansion/rising inflows. Retain ‘BUY/SO’ with a target price of Rs 2,750 (earlier Rs 2,700) as we revise FY24/25E EPS by (3)/3%,” said analysts at Nuvama Institutional Equities.