L&T Shares Zoom As Most Brokerages Remain Bullish After Q1 Print

L&T‘s share price went up over 2% to hit an intraday high of ₹3,606.10 on Thursday morning.

What Happened: The infrastructure giant's net profit for the June quarter was ₹2,786 crore, marking a 12% increase from ₹2,493 crore in the same quarter last year. The company's revenue from operations rose to ₹55,120 crore, a 15% increase from ₹47,882 crore in the corresponding quarter of the previous year.

The numbers were mostly in line with analysts' estimates, which projected revenue at around ₹53,000 crore and net profit at ₹2,750 crore. The company attributed the revenue increase to the robust execution of projects and manufacturing portfolio, supported by a large order book.

Brokerage Views: Citi maintained its “buy” rating on L&T with a target price of ₹4,396 per share. The company remains Citi’s top pick due to its quality order book, with less than 1% being slow-moving, the brokerage said, adding that the company’s June quarter earnings were in line with its expectations.

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Bernstein maintained an “outperform” rating on the stock, with a target price of ₹3,800 per share. The company reported an 8% order inflow growth, which beat the brokerage’s expectations. Both order inflow and margins are on track to meet full-year guidance, the analyst added, but pointed out that the order prospects pipeline is softer at ₹9.07 lakh crore, compared to that in June 2023.

HDFC Securities also maintained its “buy” rating on the stock with a price target of ₹4,030. The brokerage firm said that the company’s revenue beat its estimates by 7%, while EBITDA was in line. Profit after tax, however, fell short of the brokerage’s expectations. The brokerage mentioned the conglomerate’s record-high order book as one of the reasons behind its optimistic view.

Nuvama, on the other hand, maintained its “hold” rating for the stock but raised that price target to ₹4,040 from ₹4,000. The brokerage house said that the infra giant barely beat street estimates on EBITDA and profit after tax.

The analysts believe that L&T shall move in “the guided range over the next few quarters, with limited scope for a margin surprise in the near term.”

Price Action: L&T’s share price was up 2.26% to trade at ₹3,598.90 on Thursday morning.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.