Analyst Estimates: Here's What Brokers Think Of Larsen & Toubro Limited (NSE:LT) After Its First-Quarter Report

The first-quarter results for Larsen & Toubro Limited (NSE:LT) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of ₹551b coming in 3.1% ahead of expectations, and statutory earnings per share of ₹93.88, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Larsen & Toubro

After the latest results, the 33 analysts covering Larsen & Toubro are now predicting revenues of ₹2.54t in 2025. If met, this would reflect a decent 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 18% to ₹113. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹2.54t and earnings per share (EPS) of ₹116 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹3,998, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Larsen & Toubro at ₹4,394 per share, while the most bearish prices it at ₹2,945. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Larsen & Toubro's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Larsen & Toubro is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Larsen & Toubro. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Larsen & Toubro going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Larsen & Toubro (including 1 which is concerning) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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