L&T Share Price Target Raised? Why Emkay Says Rs 4,400 Is Within Reach

Emkay Research has reaffirmed its bullish stance on Larsen & Toubro (L&T), maintaining a BUY rating with an unchanged SOTP-based target price (TP) of ₹4,400. 

The brokerage highlights that L&T’s “strategic bets ensure long-term growth visibility” as the engineering major strengthens its global footprint and defence capabilities.

Middle East Momentum, Europe Traction Strength Outlook
L&T continues to build significant traction in the Middle East and Europe, especially in renewables and electrification. Emkay notes that L&T, in collaboration with Hitachi Energy, has secured a critical role in TenneT’s HVDC offshore wind program for Dutch-German grid expansion.

The report explains that solar expansion in Germany has crossed 100GW, but grid capacity lags, creating opportunities that L&T is well placed to capture.

Defence Bets Strengthen Long-Term Pipeline
L&T’s defence business outlook remains strong, supported by India’s accelerating indigenisation push.

The company has partnered with General Atomics Aeronautical Systems, Inc. for the 87-unit MALE RPAS programme, an opportunity pegged at ₹200–300 billion. It is also jointly bidding with Bharat Electronics for the AMCA 5th-generation fighter aircraft programme, valued at around ₹150 billion.

Additionally, L&T has secured the licensed manufacturing contract for the BvS10 platform with the Indian Army, further expanding its defence presence.

Order Inflows Surge 48% YoY; Guidance to Be Exceeded
The company’s 1HFY26 core order inflow jumped 48% YoY to ₹1.7 trillion, putting it ahead of its 10% annual growth guidance. Emkay highlights that L&T is already L1 in three Kuwait projects worth USD 4.5 billion, with a strong ₹10.4 trillion pipeline for the remainder of the fiscal year.

Emkay has built in 16% YoY growth in order inflows for FY26.

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Valuation Framework Backs Upside
The ₹4,400 target stems from L&T’s consolidated SOTP valuation, which includes its core E&C business, L&T Finance, LTI Mindtree, LTTS, and development projects. The stock currently trades closer to its long-term average forward P/E multiple, indicating reasonable valuations with upside potential.

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