L&T shares hit 52-week high after broking firm UBS increases target price

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₹3,560 per share in intraday trading on January 8. This surge was prompted by the brokerage firm UBS assigning a 'buy' rating to the stock, accompanied by an upward revision of the target price from ₹3,600 to ₹4,400. This adjustment implies a potential upside of 23 percent from the current levels.

However, following this peak, the L&T stock retraced to ₹3,506 as of 12:10 pm, turning negative for the day. Also read: Boeing shares decline over 8% in premarket trading in France market, here’s why Over the past three months, L&T's stock has demonstrated an impressive growth of over 13 percent, outpacing the 8 percent rise in the benchmark Sensex. Analysts at UBS have expressed confidence in L&T's robust order cycle and efficient execution, anticipating positive impacts on margin prospects in the future.

"At 1x PEG, we believe that the L&T stock is attractive and raised core price-to-earnings (PE) multiple to 30x from 26x. We believe that core earnings, returns will improve going ahead and new orders will continue to remain robust. Apart from that, core cash flow and return on capital employed (ROCE) are critical for consistent growth," the brokerage firm stated in its report.

Also read: Trident shares rise over 19%, rally 29% in seven days; here’s why Previously, the company announced the successful conclusion of the sale of its entire ownership in L&T Infrastructure Engineering to STUP Consultants. In addition to this, L&T's construction division recently secured significant contracts in the Middle East. “ In the UAE, the business has received an order for engineering, supply, construction, installation, testing and commissioning a 400/132 kV substation.