Larsen & Toubro is the top pick for JM Financial. The top-rated Indian brokerage house has put a Buy rating on L&T. However, the brokerage house doesn’t have a target price on the stock. The rating upgrade came after the company won its single-largest order in its history.
JM Financial on L&T: Mega order boost
The heavy engineering company received an ultra-mega order from QatarEnergy LNG for Rs 38,600 crore. The company’s order inflow stands strong at Rs 66,400 crore in Q4 FY25, including this order. “We had factored P&M order inflows of Rs 52,300 crore/Rs 2.68 lakh crore for Q4 FY25/FY25,” said JM Financial Services in a research note.
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With this order win, the company has comfortably surpassed its guidance of 10% YoY growth in its order inflow for FY25. L&T’s order backlog stood at Rs 5.64 lakh crore (3.1x TTM P&M revenue) as of Dec-24.
The contract is for the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4). It includes engineering, procurement, fabrication, installation and commissioning of 2 offshore compression complexes, each comprising large offshore platforms with compression and power generation facilities, living quarters, flare platforms, interconnected bridges, and other associated structures to be located 80 km off the northeast coast of Qatar.
L&T Q3 result
The company reported a 14% year-on-year growth in its consolidated net profit to Rs 3,359 crore for the Q3 FY25, compared to Rs 2,947 crore posted in the same period a year ago. It posted a revenue of Rs 64,668 crore in Q3 FY25, an increase of 17% YoY, as against Rs 55,128 crore in Q3 FY24.
L&T stock performance
The share price of L&T has risen 5% in the past five trading days. The stock has given a return of 9.4% in the past one month. However, it has fallen 5% in the past six months. The stock has declined more than 5% in the last one year.
To compare, the benchmark index, Nifty 50 has risen 1.7% in the past five trading days. The index has given a return of 4.6% in the last one month. It has fallen 10% in the past six months.
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