Brokerage Eyes Further Gains for L&T Shares Despite Recent Drops

Shares of Larsen & Toubro Limited closed higher on Friday after touching a price of ₹3,699.10 on the BSE, though the stock has dropped 10.6% over the course of 2026 so far. Motilal Oswal Financial Services has given the stock a 'Buy' rating with a target price of ₹4,400 per share, pointing to a potential upside of nearly 19%.

Growth and Strategy

The company is working on more fabrication work within India and speeding up both domestic and large private projects. These steps help balance out the slowdown caused by the ongoing crisis in the Middle East. Even with that regional crisis, money coming in from the Middle East has grown fast for the firm. Out of about ₹1.3 trillion in total order inflows announced so far in the second quarter of financial year 2027, projects worth around ₹775 billion came from the Middle East.

Global Expansion

Apart from the Middle East, the firm has branched out to win orders from other international areas like Europe, Africa, and Canada. It is also looking at North Asia, South Korea, Japan, and Taiwan for new business. With a strong pipeline of projects worth ₹15 trillion for the first nine months of financial year 2027 and an order book of ₹7.8 trillion as of June 2026, the brokerage expects steady growth in core engineering, procurement, and construction orders and revenue in the coming years.

Context

Larsen & Toubro is a major Indian engineering and construction conglomerate that handles massive infrastructure projects both at home and abroad. Large capital goods companies often track order pipelines and international inflows closely because these figures signal future revenue growth and industrial demand.