Shares of Larsen & Toubro Ltd. (L&T) climbed sharply in early trade on Friday, 12 December 2025, rallying as much as 2.5% to around ₹4,109 after global investment bank Goldman Sachs upgraded the stock from “Neutral” to “Buy” with an increased target price.
📈 What the Upgrade Says
- Goldman Sachs raised its price target to around ₹5,000, up from earlier levels, implying nearly 25% or more upside from recent share prices.
- The brokerage cited improving growth visibility, backed by L&T’s strong order book and future opportunities in sectors such as defence, green hydrogen and nuclear power, which have expanding total addressable markets over the next decade.
- Goldman analysts also pointed to rising investor confidence in a rebound in domestic capital expenditure across key infrastructure and strategic segments — a key demand driver for L&T’s diversified engineering and construction businesses.
🤝 Why This Matters for Investors
- The rating upgrade to Buy from a major global brokerage typically signals a positive outlook on earnings growth and future prospects, and often supports renewed investor interest in the stock.
- With a raised target and L&T’s involvement in multiple high-growth structural themes, the stock may attract increased attention from institutional and retail investors looking for long-term capital appreciation.
- Analysts’ market forecasts also show a range of higher target estimates, with some suggesting prices as high as ₹5,000 in the next 12 months — signalling further upside potential if growth catalysts play out.
