Buy Larsen and Toubro; target of Rs 4437: Prabhudas Lilladher

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Strong execution in Energy portfolio (conventional and green) drove revenue, with order inflows reaching an all-time high of INR1.48trn, up 28% YoY.
  • Healthy order book and prospects pipeline, with INR10.3trn H2FY27 opportunity pipeline, led by Infrastructure & Utilities, Energy Conventional, and Energy Green.
  • Management reiterated FY27 guidance of 10-12% YoY growth in order inflows and revenue, with a PPM EBITDA margin target of 7.8%.
  • Diversification into new growth platforms, including data centres, semiconductors, and defence, supports medium-term outlook.

Thesis Validation Checklist

  • Order inflows and revenue growth in line with management guidance.
  • Margin recovery and improvement in Infrastructure & Utilities segment.
  • Progress in new growth platforms, such as data centres and semiconductors.
  • Successful execution of large orders and projects, particularly in the Middle East.
  • Management's ability to mitigate logistics disruptions and higher freight and insurance costs in the Middle East.