🏗️ BoFA Sec on

LT

🔻 Downgrade: Buy ➝ Underperform 🎯 Target Price: ₹3,700 📈 Key Points: • Stock already up 10% in 2 months, leaving limited upside • Hyderabad Metro exit: earnings & RoE accretive ➝ FY26–28 earnings raised by 3–4% • Future RoE gains may come from:  ✔️ Buybacks (💰 $2.6 bn surplus cash)  ✔️ Margin & working capital efficiency (but harder from here) ⚠️ Risks Ahead: • Slowing domestic capex • Impact from lower crude prices