Motilal Oswal's research report onLarsen and Toubro
We recently met the company to understand the progress on projects and inflow scenario across different locations. West Asia crisis has impacted work on some onshore, hydrocarbon and solar projects. Company is focusing on higher fabrication in India for these projects and ramping up execution in domestic and large private projects to offset this weakness. Despite the ongoing crisis in the Middle East, inflows from that region have ramped up sharply for LT, and out of the total announced order inflows of ~INR1.3t so far in 2QFY27, projects worth ~INR775b were announced from the Middle East.
With a prospect pipeline of INR15t for 9MFY27 and an order book of INR7.8t as of Jun’26, we expect LT’s core EPC order inflows/revenue to grow at 10%/14% CAGR over FY26-29. Reiterate BUY with a SoTP-based TP of INR4,400 valuing core business at 25x Dec’28 estimates.
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