L&T share price up 41% in last one year; should you still buy it?
Larsen & Toubro (L&T) share price fell almost 2 per cent in morning trade on BSE on Friday, looking set to extend their losing run into the second consecutive session amid weak market sentiment. The stock opened at ₹2,686.95 against the previous close of ₹2,687.50 and slipped 1.86 per cent to the intraday low of ₹2,637.55 in Friday's trade so far. Market participants said the stock is witnessing some profit booking as it has gained strongly in the recent past.
L&T share price has strongly outperformed equity benchmark Sensex in the last one year, rising over 41 per cent. The Sensex has gained just about 11 per cent in the same period. Experts and brokerage firms are positive about the stock for the long term.
Global brokerage firm CLSA, after the soft landing of Chandrayaan 3 on the moon, said it should strengthen the ‘Make in India’ theme. CLSA said it would open up global rocket and satellite markets for Indian players such as L&T. Mint talked to fundamental and technical experts to assess the growth potential of the stock.
Here's what they said: Jain said Larsen & Toubro shares have surged 20 per cent in the last three months compared to Sensex's 5 per cent primarily due to a robust order book driven by government infrastructure projects. "Strengthened infrastructure business contributed to revenue growth, although last quarter showed revenue weakness. L&T's buyback at ₹3,000 further boosted the stock.
The rise seems supported by favourable business conditions, but continued growth depends on sustaining orders and execution efficiency. Investors eyeing a year timeframe should monitor order inflow and execution performance closely," said Jain. Jasani underscored that Larsen & Toubro is one of the key beneficiaries of
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