Brokerages divided on L&T's new order prospects, exposure to West Asia

L&T's management indicated the pace of new orders in the domestic market had slowed and there would be weakness for the two quarters between now and June 2024 owing to the Lok Sabha elections

Brokerage firms on Wednesday appeared divided in their calls on Larsen & Toubro (L&T) after the company’s 2023-24 (FY24) October-December quarter (third quarter, or Q3) performance and guidance for the quarters ahead. While few stayed optimistic about the stock over future order inflow prospects, others saw increasing exposure to West Asia and fixed price contracts as a concern.

In Wednesday’s trade, L&T’s share price closed at Rs 3,480 per piece, 4.22 per cent down from its previous day’s close. The company announced its Q3FY24 financial performance after market hours on Tuesday, a 15 per cent year-on-year (Y-o-Y) rise in net