Larsen & Toubro share price climbs over 11% in March; what’s driving the stock? Is it a stock to buy? Experts weigh in

Larsen & Toubro (L&T) share price witnessed a healthy gain in intraday trade on BSE on Thursday, March 27, looking set to snap its two-day losing run. L&T's share price opened at ₹3,455.05 against its previous close of ₹3,442.60 and rose 2.4 per cent to an intraday high of ₹3,526.70. Around 11:35 AM, L&T stock traded 2.31 per cent higher at ₹3,522.

The stock is witnessing healthy traction this month. At Thursday's high of ₹3,526.70, the stock has jumped over 11 per cent in March so far after three consecutive months of losses. The stock hit a 52-week low of ₹3,141.30 on February 28 this year after hitting a 52-week high of ₹3,963 on December 10 last year.

What is driving L&T stock?

The recent rise in L&T stock price could be attributed to the company's improved growth prospects and sectoral tailwinds.

In an exchange filing on March 26, L&T announced it had bagged a mega contract, its largest order to date, for its offshore hydrocarbon business.

"QatarEnergy LNG, the world’s premier LNG company, has awarded an ultra-mega offshore contract for the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4) to Larsen & Toubro Limited Hydrocarbon Business (L&T Energy Hydrocarbon – LTEH) marking the largest single contract ever received by L&T," the company said.

“Securing QatarEnergy LNG's Ultra Mega Offshore Contract—the largest single order in our history is a landmark achievement. This prestigious project strengthens our global energy portfolio while supporting Qatar's energy security objectives," said S N Subrahmanyan, Chairman & Managing Director of L&T.

Besides, on March 21, the company announced its board approval for borrowing proposals worth ₹12,000 crore through external commercial borrowings, term loans, non-convertible debentures or any other instrument.

L&T: Is it a stock to buy?

Experts appear positive about the stock for the long term due to the strong inflow of orders in the company.

Brokerage firm BNP Paribas has an "outperform" view on the stock with a target price of ₹4,435.

The brokerage firm underscored the sectoral tailwind for the stock.

"We expect Indian infrastructure investments to remain elevated in the near to long term, driven by government investments, especially in power transmission, generation (thermal and renewable), defence, transport infra (roads, railways, and metro) and water sectors. We expect L&T to be a key beneficiary of these investments and estimate tendering prospects of ₹22 lakh crore and order inflows of over ₹3.3 lakh crore by FY27," BNP Paribas said.

The brokerage firm highlighted that the recent concerns on L&T’s Middle East prospects due to potential oil price decline seem overblown.

Moreover, BNP Paribas underscored that the order inflows for the company have exceeded street estimates in the past four quarters despite the bearish outlook on the stock.

"We believe the recent narrative of L&T’s order inflows shrinking in FY26 due to a possible drop in crude oil prices is misplaced. Our deep dive into the Middle East prospects highlights that tendering could remain robust in CY25-26, coupled with a further fall in NWC levels," said BNP Paribas.

Technical experts also note that the stock is exhibiting bullish sentiment, and it could be poised for further gains.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that L&T rebounded strongly after hitting a low of ₹3,141 on 28-02-2025, gaining approximately 13 per cent from the bottom.

The stock is now trading above the R4 Camarilla monthly pivot, indicating bullish momentum.

"We anticipate base formation in the ₹3,400- ₹3,550 range. A daily close above ₹3,550 could trigger further upside, potentially pushing the stock toward ₹3,650. This setup suggests a positive outlook, supported by recent recovery and technical levels," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.