1 hr ago
Motilal Oswal Sees 19% Upside in Larsen & Toubro Shares
Larsen & Toubro is a company that builds large projects.
Its shares have gained over five years, but have fallen so far in 2026.
Motilal Oswal believes the company could benefit from carrying out projects effectively and winning more orders in India.
The brokerage also said the company is receiving orders from several regions, including the Middle East.
It expects the company’s core engineering and construction orders and revenue to grow over the coming years.
Motilal Oswal kept its Buy rating and set a target price of ₹4,400 per share.
That target suggests the shares could rise nearly 19%, according to the brokerage.
Larsen & Toubro shares returned 114% over five years, but have declined 10.6% so far in 2026.
The stock closed nearly 1.2% higher on Friday.
Motilal Oswal cited strong execution and growth in domestic orders as potential drivers.
The brokerage said Middle East projects accounted for about ₹775 billion of roughly ₹1.3 trillion in announced inflows in 2QFY27.
Motilal Oswal retained a Buy rating and a ₹4,400 target price, implying nearly 19% upside.
- Who
- Larsen & Toubro and Motilal Oswal Financial Services.
- What
- Motilal Oswal maintained a Buy rating on Larsen & Toubro and set a ₹4,400 share-price target.
- Where
- Larsen & Toubro operates across domestic and international project markets; the article highlights the Middle East and other regions.
- When
- The article reports the stock’s Friday close and performance so far in 2026; the brokerage cites 2QFY27 order inflows.
- Why
- Motilal Oswal cited execution, domestic order growth, and geographic diversification as reasons for its positive outlook.
Risks and recent weakness
Brokerage’s positive outlook
Share-price performance
Risks and recent weakness
The shares have declined 10.6% so far in 2026, and the article says they have rarely surged over the past year.
Brokerage’s positive outlook
Motilal Oswal sees nearly 19% upside to its ₹4,400 target, citing execution and order growth.
Regional exposure and order growth
Risks and recent weakness
The ongoing West Asia crisis is a source of weakness that the company is seeking to offset.
Brokerage’s positive outlook
Motilal Oswal said Middle East inflows had risen sharply and noted the company’s pursuit of orders in other international markets.
Key facts
- Five-year share return
- 114%
- Share-price change in 2026
- Down 10.6% so far
- Friday close
- Nearly 1.2% higher
- Motilal Oswal rating
- Buy
- Target price
- ₹4,400 per share
- Announced 2QFY27 order inflows
- About ₹1.3 trillion, including approximately ₹775 billion in Middle East projects
- Order book
- ₹7.8 trillion as of June 2026
- Core EPC growth forecast
- 10% order-inflow CAGR and 14% revenue CAGR over FY26–29
Quotes
Motilal Oswal Financial Services
Brokerage whose report assesses Larsen & Toubro.
“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.”
livemint.com
“We maintain our SoTP-based TP of INR4,400, based on 25x on Dec’28E earnings for the core business and a 25% holding company discount to subsidiaries.”
livemint.com
Sources
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