Order pipeline, margin gains positive for Larsen & Toubro's stock

The brokerage believes that the order book would grow at 12 per cent CAGR over FY24-27

Investor sentiment for the Larsen & Toubro (L&T) stock was positive following an ‘overweight’ rating by JPMorgan. The price target from JPMo­rgan implies a potential upside of nearly 25 per cent from Friday's close.

The brokerage believes that the stock is attractively valued at 25 times estimated core earnings per share (EPS) for FY26. It estimates that EPS would grow at a compound annual growth rate (CAGR) of 23 per cent over FY24-27, along with core return on capital employed (RoCE) of 20 per cent.

The EPS growth would be driven by revenue growth (around 16 per