Shares of Larsen & Toubro Limited have delivered a 114% return over the last five years but have declined 10.6% in 2026 so far, according to livemint.com. The stock closed nearly 1.2% higher on Friday, with Motilal Oswal Financial Services projecting nearly 19% upside potential based on strong execution and ramped-up domestic orders.
Motilal Oswal noted that despite the ongoing crisis in West Asia, Larsen & Toubro has seen sharp inflows from the region, with projects worth around INR 775 billion out of INR 1.3 trillion announced order inflows in the second quarter of FY27 coming from the Middle East. The company is also diversifying its international order book with new orders from Europe, Africa, Canada, and targeting North Asia, South Korea, Japan, and Taiwan.
The company is focusing on increasing fabrication within India and accelerating execution on domestic and large private projects to offset regional uncertainties. Larsen & Toubro’s order book stood at INR 7.8 trillion as of June 2026, with a prospect pipeline of INR 15 trillion for the first nine months of FY27. Motilal Oswal expects the company’s core EPC order inflows and revenue to grow at 10% and 14% CAGR respectively over FY26-29.
Larsen & Toubro’s strategic diversification and strong order pipeline underpin Motilal Oswal’s forecast of nearly 19% upside in the stock price, reflecting confidence in the company’s growth trajectory amid global and regional challenges.