The company’s consolidated revenue in Q3FY25 increased 17% to ₹64,668 crore led by strong order book and ramp up in execution momentum across its Projects & Manufacturing (P&M) businesses.
L&T said it received its highest ever quarterly orders of ₹116,036 crore at the group level during the quarter ended December 31, 2024, registering a substantial YoY growth of 53%. International orders at ₹62,059 crore during the quarter comprised 53% of the total order inflow.
The consolidated order book of the group as on December 31, 2024, is at ₹564,223 crore, registering a growth of 19% over March 2024, with the share of international orders at 42%.
Should you buy L&T shares after Q3 results?
Nuvama Institutional Equities said that L&T delivered stellar Q3FY25 order inflows at ₹1.16 lakh crore (+53% YoY) after a slow H1FY25 along with robust core EPC execution (+20% YoY) with margins flat at ~7.6%.
It believes that core OPM may bottom out at current levels of ~8.2% with FY26E/27E having a path towards 8.5–9% as more projects reach margin recognition milestones by next year.
“However, we continue to build in ~8.2% core OPMs till FY27 along with 10–12% OI growth and 12–15% top-line growth, leaving room for further upside. Management commentary suggests large ticket-size order inflows in Q4FY25, four– five orders where they are well placed (across Energy, B&F, urban infra, water, metals, etc). Timely execution of job work remains the key variable to monitor,” Nuvama Equities said.
The brokerage firm retained a ‘Buy’ rating on L&T shares on strong order book and rising execution, though a margin uptick may still be some time away. It revised FY25E and FY26E earnings per share (EPS) estimates by -3% and 1% for an unchanged target price of ₹4,000 per share, valuing the core business at 25x FY27E EPS.
Palak Devadiga, Research Analyst, StoxBox, noted that Larsen & Toubro delivered a decent operating and financial performance during the quarter.
“While the company did not surpass street estimates, its robust order book, record-high order inflows, and ramp-up in execution momentum bode well for future growth. The company anticipates that the Union Budget will prioritize infrastructure development, technology adoption, skill enhancement, and energy transition policies, which could further drive economic momentum. L&T stands to benefit from the government’s continued push towards infrastructure developments and economic growth,” said Devadiga.
According to him, L&T has been performing well with improved operational efficiency and sustained digital adoption. Its strong near-term order prospects and confidence in maintaining growth momentum position it for continued success in the coming quarters.
At 9:45 AM, L&T shares were trading 2.83% higher at ₹3,516.45 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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