The global brokerage firm believes that the stock seems ideally placed to navigate the capex cycle in India and the Middle East.
JP Morgan in its note has also stated that the valuations are attractive, coupled with a strong earnings growth.
“The bottoming out of P&M margin is likely to provide a tailwind to earnings growth and fast EPS growth will be driven by healthy core revenue growth of 16% and 60bps core margin expansion over FY24-FY27,” JP Morgan added.
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In the last one year, the shares of L&T have gained 14.7% but have remained flat in the current year so far. On the other hand, the same have given negative returns of 3.6% and 2.85% in the last 6 months and 3 months respectively, according to the BSE analytics.
Technically, the stock is currently place below all its significant short, medium and long term exponential moving averages (10, 20, 50, 100 and 200 DEMA). On the relative strength indicator (RSI) the stock is placed near the 44 mark, oscillating near a mid range on the indicator.
The engineering and construction major reported 12% year-on-year growth in its consolidated net profit to Rs 2,786 crore for the first quarter ended June 30, 2024, while the revenue from operations increased 15% year-on-year to Rs 55,120 crore
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)