Shares of Larsen & Toubro rose more than 2% in trading after falling sharply in the previous sessions. The recovery came as investors bought the stock following its recent decline.
The stock had dropped earlier this week amid rising geopolitical tensions in West Asia. The conflict involving Iran, Israel and the United States raised concerns among investors, as L&T has a large share of its projects in the region.
During the trading session, L&T shares climbed close to ₹3,990 after the correction seen in recent days. The stock had fallen around 9–12% over the past few sessions and was down nearly 13% from its record high of about ₹4,440 reached in February.
Despite the recent volatility, several brokerage firms continue to remain positive about the company’s long-term outlook. Firms such as Jefferies and Motilal Oswal Financial Services have maintained their “buy” rating on the stock.
However, both brokerages have slightly lowered their target prices because of uncertainty linked to the situation in West Asia. Jefferies reduced its target price for L&T to around ₹4,500 from ₹4,715 earlier, while Motilal Oswal cut its target to about ₹4,400.
Analysts said the revisions reflect short-term risks linked to the company’s exposure to the Middle East market. Nearly 40% of L&T’s order book is connected to projects in West Asia, with Saudi Arabia accounting for a major share of those contracts.
Because of this exposure, delays or disruptions in the region could affect project execution and earnings in the near term. Analysts estimate that if projects are halted for about a month, the company’s earnings per share for FY26 could decline by around 6–8%.