Technical Analysis: Larsen & Toubro (L&T) – Daily Chart
Larsen & Toubro (L&T) is currently demonstrating a strong bullish trend on the daily chart, trading near ₹3973. Price action is supported by key moving averages—the 20, 50, 100, and 200 DMA—all showing an “outperform” signal. Parabolic SAR dots remain below the price, confirming bullish momentum. Momentum oscillators like RSI (~75), MACD, and Stochastic RSI are all in strong uptrend zones, indicating sustained buying interest and volume support. The stock recently hit a new 52-week high at ₹3985, signaling strong technical strength. Immediate resistance is near ₹4010, and if overtaken, L&T could continue its rally toward ₹4100 and higher. Support levels to watch include ₹3820 and ₹3700, which may represent good entry points on pullbacks.
Fundamental Analysis
- Larsen & Toubro boasts a healthy order book of around ₹4.7 lakh crores, ensuring strong future revenue visibility.
- Quarterly earnings Q2 FY26 are expected to reflect 12-15% YoY revenue growth driven by high infrastructure spends.
- Consistent ROE of over 18% and manageable debt levels demonstrate financial strength.
- Operational efficiencies and strong execution in infrastructure, engineering, and power sectors bolster profitability.
- Free cash flows are steady with strong project pipelines providing earnings visibility beyond near-term.
Upcoming News & Earnings Impact
- L&T is set to announce its Q2 FY26 earnings tomorrow (29th October). Market anticipates steady revenues along with margin improvement due to cost rationalization.
- Focus will be on order inflows and updates on government infrastructure projects.
- Positive surprises on margin expansion or order wins could lead to a bullish reaction.
- Any negative surprise or muted guidance could result in temporary correction and volatility.
- Investors should watch for management commentary closely after results for forward guidance insights.
Disclaimer & Disclosure
This analysis is for informational purposes only and does not constitute financial advice. All investments carry risk. It is recommended to consult a certified financial advisor before making investment decisions. Analyst and Investogainer Research do not hold positions in L&T at the time of this report.