L&T shares rally 6% after Q2 net profit jumps 33% YoY. Why Jefferies cut target price?
Larsen & Toubro (L&T) shares rose sharply on Wednesday after the company reported a 33% year-on-year rise in Q2 FY27 net profit to Rs 5,202 crore. Jefferies retained its Buy rating but cut the target price to Rs 4,700, citing weaker-than-expected margins and factoring in lower estimates.
L&T shares surged more than 4% on Wednesday following a strong Q2 earnings report, with net profit rising 33% year-on-year. Despite Jefferies cutting its target price to Rs 4,700 from Rs 5,000, maintaining a 'Buy' rating, the stock reached Rs 3,894 on the NSE, becoming the top gainer on the Sensex and Nifty amid broader market weakness.
The company reported Rs 5,202 crore net profit for Q2 FY27, up from Rs 3,898 crore in the same quarter last year, while revenue grew 16% YoY to Rs 78,750 crore. Jefferies cited lower-than-expected EBITDA and a 7.2% decrease in the E&C margin as reasons for the target price reduction, while noting the company's strong order flow and guidance for FY27.
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