Technical Analysis:
L&T has shown a strong bullish sentiment over the past two decades. The stock has experienced significant growth, with notable annual increases:
The stock created an all-time high of ₹3,963.5 in December 2024, followed by a phase of profit booking and correction. Currently, L&T is consolidating within the ₹3,100-₹3,300 support zone, which has served as strong support multiple times in February, May, June, and October 2024. The stock's next move within this zone will determine its future trend.
In this bullish rally, we have observed multiple instances where the stock faces a major resistance, breaks out, and then the same resistance turns into a support, leading to new higher highs. This pattern has been consistent since 2018, reinforcing the stock’s bullish structure.
Currently, the stock can either:
For a bullish scenario, traders should watch for strong support confirmation with bullish candlestick patterns. For a bearish scenario, the stock must show strong rejection from support with bearish patterns.
Fundamental Analysis:
L&T's Q3 FY25 results showed strong revenue growth, though profitability was impacted by rising costs. Below are the key financial metrics (values in ₹ crore):
Quarterly Performance Insights:
L&T's Q3 net profit rose 14% YoY to ₹3,359 crore, though it missed expectations due to EBITDA margin contraction of 70 basis points to 9.7%.
Operating margins were impacted by a 50% increase in raw material and component costs and a 16% rise in construction material consumption.
Revenue was expected to increase 18% YoY to ₹65,065 crore, with net profit projected to increase 24% YoY from ₹2,947 crore.
L&T secured ₹1,16,036 crore in new orders, reflecting 53% growth YoY.
Infrastructure projects saw an order inflow of ₹49,070 crore, up 13.6% YoY.
Conclusion:
L&T has a strong long-term bullish structure, with higher highs and higher lows. The ₹3,100-₹3,300 support zone is crucial for the stock’s next move. A breakout above this zone with strong volume could push L&T towards an All Time High, while a breakdown could signal further profit booking.
Disclaimer: This analysis is for educational purposes only. Investors should conduct their own research before making any trading decisions.
L&T has shown a strong bullish sentiment over the past two decades. The stock has experienced significant growth, with notable annual increases:
- 2021: +47.24%
- 2022: +10.02%
- 2023: +69.05%
- 2024: +2.32%
The stock created an all-time high of ₹3,963.5 in December 2024, followed by a phase of profit booking and correction. Currently, L&T is consolidating within the ₹3,100-₹3,300 support zone, which has served as strong support multiple times in February, May, June, and October 2024. The stock's next move within this zone will determine its future trend.
In this bullish rally, we have observed multiple instances where the stock faces a major resistance, breaks out, and then the same resistance turns into a support, leading to new higher highs. This pattern has been consistent since 2018, reinforcing the stock’s bullish structure.
Currently, the stock can either:
- Break out from the support zone and move towards an All-time high, or
- Break down from the support zone, retest it as resistance, and continue a correction phase.
For a bullish scenario, traders should watch for strong support confirmation with bullish candlestick patterns. For a bearish scenario, the stock must show strong rejection from support with bearish patterns.
Fundamental Analysis:
L&T's Q3 FY25 results showed strong revenue growth, though profitability was impacted by rising costs. Below are the key financial metrics (values in ₹ crore):
- Total Income: ₹64,668 in Q3 FY25, ₹51,024 in Q2 FY25, ₹55,128 in Q3 FY24.
- Total Expenses: ₹59,460 in Q3 FY25, ₹46,302 in Q2 FY25, ₹50,290 in Q3 FY24.
- Total Operating Income: ₹5,208 in Q3 FY25, ₹4,722 in Q2 FY25, ₹4,838 in Q3 FY24.
- Profit Before Tax: ₹5,333 in Q3 FY25, ₹5,555 in Q2 FY25, ₹4,772 in Q3 FY24.
- Profit After Tax: ₹4,001 in Q3 FY25, ₹4,113 in Q2 FY25, ₹3,595 in Q3 FY24.
- Diluted Normalized EPS: ₹24 in Q3 FY25, ₹25 in Q2 FY25, ₹21 in Q3 FY24.
Quarterly Performance Insights:
L&T's Q3 net profit rose 14% YoY to ₹3,359 crore, though it missed expectations due to EBITDA margin contraction of 70 basis points to 9.7%.
Operating margins were impacted by a 50% increase in raw material and component costs and a 16% rise in construction material consumption.
Revenue was expected to increase 18% YoY to ₹65,065 crore, with net profit projected to increase 24% YoY from ₹2,947 crore.
L&T secured ₹1,16,036 crore in new orders, reflecting 53% growth YoY.
Infrastructure projects saw an order inflow of ₹49,070 crore, up 13.6% YoY.
Conclusion:
L&T has a strong long-term bullish structure, with higher highs and higher lows. The ₹3,100-₹3,300 support zone is crucial for the stock’s next move. A breakout above this zone with strong volume could push L&T towards an All Time High, while a breakdown could signal further profit booking.
Disclaimer: This analysis is for educational purposes only. Investors should conduct their own research before making any trading decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.