BENGALURU (Reuters) – Shares of Larsen and Toubro (L&T) fell as much as 5.6%, their worst intraday fall in four years, after the Indian engineering company forecast a subdued revenue growth outlook for the current fiscal year.
L&T’s stock fell the most since May 2020 as well as hit the lowest level since Feb 22 at 3,290 rupees, and was the top loser in the benchmark Nifty 50 index, dragging it down 0.2%.
National elections and global geopolitical tensions will hurt its order inflow and revenue in fiscal year 2025, the company said on Wednesday.
The stock trimmed some losses to last trade 4.4% lower at 3,333 rupees.
At least eight analysts out of 30 lowered their price targets on the stock after the results, with a median price target of 3,970 rupees, down from 4,050 rupees a month ago.
The company’s revenue guidance of 15% year-on-year growth looks low given the fiscal 2024 orders, Jefferies analysts said in a note. The brokerage lowered its price target to 3,970 rupees from 4,135 rupees.
L&T also forecast margins for its projects and manufacturing segment at 8.25% for fiscal 2025, which analysts said were weak.
The flattish margin guidance has been a bit of a dampener, Antique Stock Broking said in a note, even as it expected the company to meet its revenue guidance.
Analysts at Kotak Institutional Equities said the guidance of 10% growth in order inflow for FY25 appeared aggressive, compared to L&T’s expectations of a decline in overseas order inflows and a large part of the remaining half of order inflows coming from domestic.
L&T’s shares are down 5.4% so far this year, compared with the benchmark Nifty 50’s 2.3% gains.
(Reporting by Sethuraman NR in Bengaluru; Editing by Janane Venkatraman)
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