The stock has come under pressure recently, declining about 18% since early March, sharply underperforming the BSE Sensex, which is down around 7% during the same period.
The decline has been driven by concerns over project execution in the Middle East and the possibility of lower capital expenditure in the region impacting the company’s future order pipeline and revenue growth.
Global brokerage firm Goldman Sachs has maintained its ‘Buy’ rating on the stock, with a price target of ₹4,420 per share.
The brokerage acknowledged near-term risks around execution, particularly due to ongoing geopolitical tensions. However, it believes the company’s medium-term opportunity pipeline remains largely intact, even though some order deferrals over the next few quarters are likely.
Goldman Sachs has lowered its revenue estimates for the March quarter, factoring in slower execution during the latter part of the month.
It also expects the impact of weak execution to spill over into the first quarter of financial year 2027.
Additionally, the brokerage has cut its core order inflow growth estimate for financial year 2027 to 1.1%, from 7.7% earlier, assuming minimal ordering activity in the international business for at least one month.
Larsen & Toubro has been among the worst-performing large-cap stocks this month, marking its steepest monthly decline since March 2020. The sharp correction has wiped out over ₹1.1 lakh crore in market capitalisation.
Despite this, analyst sentiment remains largely positive. Of the 34 analysts tracking the stock, 28 maintain a ‘Buy’ rating, while four recommend ‘Hold’ and two have a ‘Sell’ rating.
Shares of Larsen & Toubro are currently trading 2.06% higher at ₹3,615.90, although the stock remains down about 13% so far in 2026.
