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L&T shares snap four-day losing streak but analysts cut targets on West Asia concernsA month of no work due to the ongoing US-Iran war would likely impact L&T's estimated FY26 earnings per share (EPS) by 6% - 8%, Jefferies said.By Shloka Badkar  March 5, 2026, 9:35:17 AM IST (Published)3 Min ReadShares of Larsen and Toubro (L&T) Ltd. gained on Thursday, March 5, as brokerage firms Jefferies and Motilal Oswal cut their price targets on the stock. The stock, so far, has gained after a four-day losing streak.

Both, Jefferies and Motilal Oswal have maintained their 'buy' ratings on L&T, but have reduced their price targets by 4.5% and 4.3%, respectively.

Jefferies

Jefferies has a "buy" rating on the stock, with a target price of ₹4,500 per share from the previous ₹4,715. This implies an upside potential of 15.9% from its previous close.

The analyst said global engineering and construction companies with exposure to the Middle East, including L&T, are down between 10% - 24% since the Iran-US-Israel conflict started.

As much as 37% of L&T's order book is from the Middle East, with Saudi holding a lion's share of over 75%.

A month of no work would likely impact L&T's estimated FY26 earnings per share (EPS) by 6% - 8%, Jefferies said.

Assuming normalcy returns over time in the Middle East, L&T should recover most of the share price losses between the order flow growth, margin stability and its five-year strategy plan that is due to be unveiled in May 2026.

Motilal Oswal

Motilal Oswal also has a "buy" rating on L&T and has cut its price target to ₹4,400 per share from ₹4,600 apiece. This implies an upside potential of 18.5% from its previous close.

It said L&T is turning more into a 'moving parts' thesis from a 'sum-of-the-parts' thesis, with a constantly changing scenario in the Middle East impacting the core engineering, procurement and construction (EPC) business and increasing risks for IT business from AI-led disruption.

While there are positives regarding the company's growth outlook based on its strong order book and prospects of healthy core profit after tax (PAT) earnings over FY25-28, the analyst does not believe the near-term headwinds persist on"

International revenues, with the Middle East accounting for nearly 39% - 40% of its total order book as of the first nine months of FY26.

It has limited clarity on how things will unfold in the Middle East over the medium-term. But in the near-term, it can impact execution and margins for certain projects, Motilal Oswal said.

The analyst has adjusted the core business valuations to 25x from 27x to bake in the current volatile scenario.

Of the 34 analysts who have coverage on the stock, 28 have a 'buy' rating, four have a 'hold' rating and tow have a 'sell' rating.

Shares of L&T are trading with gains of 1.5% on Thursday at ₹3,938.7. The stock had declined 12% over the last four trading sessions.

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