Larsen & Toubro (LT IN): Hold: Responsible performance in tough environment

研报英文原文证据摘录

Larsen & Toubro (LT IN): Hold: Responsible performance in tough environment

29 July 2026

Equities

Construction & Engineering Larsen & Toubro (LT IN)

Hold: Responsible performance in tough environment India

◆ Net profit beat consensus on higher other income; 1Q order MAINTAIN HOLD

inflow surprised positively, guidance unchanged

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ We believe responsible NWC management amidst a tough

environment may constrain revenue growth in near term 3900.00 3800.00

◆ Increase TP to INR3,900 (from INR3,800) on roll-forward; SHARE PRICE (INR) UPSIDE/DOWNSIDE

retain Hold rating 3832.00 +1.8%

(as of 28 Jul 2026)

Too early to read from 1Q performance: Net profit of INR41.2bn up by 14% y-o-y beat

MARKET DATA

consensus estimates on higher-than-expected other income. In our view, treasury income Market cap (INRm) 5,271,794 Free float 100%

has benefited from end of quarter correction in yields. 1Q order inflows (OI) grew by Market cap (USDm) 54,963 BBG LT IN

3M ADTV (USDm) 101 RIC LART.BO

14%y-o-y at INR1trn, higher than consensus estimates as it included a large order win

from TenneT, which in our estimates would have accounted for 25% of OI. The company FINANCIALS AND RATIOS (INR)

has maintained its guidance for OI at 10-12% despite a strong start to the year. Revenue Year to 03/2026a 03/2027e 03/2028e 03/2029e

HSBC EPS 129.39 149.48 182.97 213.11

grew by 7% y-o-y for 1QFY27 due to disruptions from the ongoing Middle East conflict HSBC EPS (prev) 129.39 146.06 180.57 na

against company’s full year guidance of 10-12% which the company has kept unchanged. Change (%) 0.0 2.3 1.3 na

Consensus EPS 128.60 150.12 182.46 208.38

The core business, identified as projects, products, and manufacturing (PP&M), delivered PE (x) 29.6 25.6 20.9 18.0