Larsen & Toubro (L&T) has several fundamental positives

Larsen & Toubro (L&T) has several fundamental positives that could support the stock: the company continues to report strong order momentum, with Q2 FY27 order inflows already estimated at around ₹1.48 lakh crore, including major projects across Dubai, Kuwait, Nigeria, Ethiopia and other international markets. More recently, L&T secured two Dubai RTA road-infrastructure contracts worth up to ₹7,500 crore, covering the Latifa Bint Hamdan Corridor, which strengthens its Middle East order pipeline. The company has also maintained its FY27 guidance of around 10–12% growth in revenue and order inflows, supported by a very strong order book and India's ongoing infrastructure/capex cycle. Another positive is the government's ₹1.86 lakh crore PM DHARA programme, which targets renewable-power evacuation, storage and HVDC projects and could create substantial long-term opportunities for L&T's infrastructure and power businesses. However, investors should watch Middle East geopolitical risks, elevated energy/input costs and execution margins, as these have pressured profitability and EBITDA margins. Overall, the strong order book, fresh mega orders, domestic capex opportunity and improving international order inflows remain positive for L&T's medium-to-long-term fundamentals, while near-term volatility may continue because of geopolitical and margin concerns.