Posted on May 9, 2025, by Niftynews
LT Share Price saw a sharp rally on May 9, 2025, jumping over 4% in early trade after the company posted its Q4 FY25 financial results. Despite broader market uncertainty caused by rising geopolitical tensions, investors showed strong confidence in the stock, driven by robust performance numbers and a generous dividend announcement.
In this article, we break down the key reasons behind the rally in L&T Share Price and whether it’s a good time for investors to consider buying the stock.
LT Share Price Jumps Following Strong Q4 FY25 Earnings
Engineering and construction giant Larsen & Toubro (L&T) delivered a standout performance in the final quarter of FY25. The company reported a consolidated net profit of ₹5,497 crore, marking a 25% increase year-on-year compared to ₹4,396 crore in the same quarter last year.
Operating revenue came in at ₹74,392 crore, up 11% YoY from ₹67,079 crore in Q4 FY24. EBITDA rose 13% to ₹8,203 crore, with EBITDA margin improving by 20 basis points to 11%.
This strong financial showing has had a direct positive impact on L&T Share Price, which jumped as high as ₹3,477.55 on the BSE in early trade.
Order Book Strength Fuels Investor Optimism
One of the top drivers of the L&T Share Price rally is the company’s robust order book. L&T secured orders worth ₹356,631 crore during the full financial year FY25, registering an 18% growth compared to FY24. Notably, international orders made up 58% of this total at ₹207,478 crore.
In Q4 FY25 alone, the company booked orders worth ₹89,613 crore—a 24% jump YoY. Of this, international orders totaled ₹62,739 crore, constituting 70% of total Q4 inflows.
This global diversification is seen as a key strength, offering L&T insulation from regional economic pressures and driving confidence in L&T Share Price.
Dividend Boosts Shareholder Value
Adding to investor enthusiasm, L&T’s board declared a ₹34 per equity share dividend for FY25. The record date for eligibility has been set for June 3, 2025.
The dividend announcement underscores the company’s strong cash flow position and further reinforces positive sentiment around L&T Share Price.
Analyst Views – Should You Buy L&T Share Price Now?
Market analysts remain optimistic about L&T’s growth trajectory, despite cautioning about some near-term headwinds. According to Ashwani Sharma, Senior Research Analyst at Emkay Global:
“L&T’s resilient Q4 results reflect its well-diversified engineering and manufacturing portfolio, along with exposure to multiple geographies and clients.”
He also pointed to temporary challenges due to the India-Pakistan conflict, which could impact order execution timelines and conversion. Nonetheless, Emkay has maintained a ‘Buy’ rating on the stock, while adjusting its target price to ₹4,000 for March 2026 (down 12%).
L&T Share Price Valuation Remains Attractive
At current levels, L&T Share Price is trading at a core P&M multiple of 25x/20x FY26E/27E EPS—a discount compared to the company’s historical average of 23x. This valuation is considered attractive, especially when compared with other industrial and infrastructure peers.
L&T is expected to deliver a 23% EPS CAGR over FY25–27, with RoE moving toward 19% by FY27. The company also boasts strong free cash flows and a solid balance sheet, which are appealing traits for long-term investors.
Near-Term Risks and What to Watch
While the medium- to long-term outlook for L&T Share Price is positive, investors should keep an eye on some potential risks:
- Geopolitical instability could delay project execution and affect order inflow conversion.
- Rising fixed-price order backlog (now at 46% vs 42%) could pressure margins, especially in the hydrocarbon segment.
- Global macroeconomic challenges may impact international order volumes in select markets.
That said, L&T’s execution track record and diversified project portfolio help mitigate many of these risks.
L&T Share Price: Final Verdict for Investors
The combination of strong Q4 results, a healthy order pipeline, dividend payouts, and attractive valuations make L&T Share Price a compelling buy for investors with a medium to long-term horizon.
Despite short-term uncertainties, the company’s fundamentals remain solid, and it is well-positioned to benefit from infrastructure growth both in India and globally.
