L&T Share Price Today Recovers After Falling 12% In Last 2 Sessions Amid Middle East Crisis: Buy, Sell, Hold?

L&T Share Price Today: Shares of Larsen & Toubro rebounded nearly 2.2% in the first half of Thursday, March 5, trading session after plunging about 12% over the previous two sessions. The recovery was driven by value buying as investors stepped in after the sharp correction in the civil construction major, which had come under pressure amid escalating tensions in the Middle East.

L&T shares were trading 2.5% higher at Rs 3,979.35 per share on BSE with a market capitalisation of Rs 5,47,403.97 crore at 12:17 pm on Thursday. The stock had touched an intraday high of Rs 3980 per share and an intraday low of Rs 3907 per share on BSE.

L&T Share Price Recommendation

L&T is likely to showcase a strong growth supported by order book and prospects of healthy core PAT earnings over financial year 2027-28E, noted Motilal Oswal in its report released on Thursday, March 5. The brokerage further stated that the ongoing Middle East concerns will impact core EPC business and increased risks for IT businesses from
AI-led disruption will shape the company's dominance over time. The brokerage maintained a 'Buy' rating for the stock.

L&T Share Price Target

Motilal Oswal maintained a 'Buy' rating for the civil construction stock with a target price of Rs 4,400 per share, indicating a 13% upside. However, the brokerage downgraded L&T share price target.

" We adjust our core business valuations to 25x (from 27x) to bake in the current volatile scenario for now and arrive at a revised two-year forward TP of INR4,400 (vs. INR4,600 earlier). Retain BUY," noted Motilal Oswal in its report.

L&T Share Price Under Pressure Amid Middle East Tensions

The ongoing US-Israel, Iran war has concerned investors about the company's growth prospects. The main concern is L&T's order book, which although remains strong, but is prone to geopolitical headwinds as its significant portion comes from the West Asia region. Which means that it is currently the centerstage for the war.

"While we are positive about the company's growth outlook based on its strong order book and prospects of healthy core PAT earnings over FY25-28E, we do believe that near-term headwinds persist on 1) international revenue, with the Middle East accounting for nearly 39-40% of its total order book as of 9MFY26; and 2) IT subsidiary's valuations, which are getting impacted by AI-led disruption."

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