L&T shares fall after second price target cut in two days due to West Asia crisis Shares of Larsen and Toubro (L&T) Ltd. dropped nearly 3% on Thursday, March 12, following a second price target cut in two days. The decline came amid concerns over the ongoing West Asia crisis, which has disrupted business operations and investor sentiment. Despite the drop, the stock showed signs of recovery later in the trading session. Brokerage firm Kotak Institutional Equities revised its price target for L&T shares to ₹4,000 per share from ₹4,350, maintaining a 'buy' rating. The revised target suggests a potential 4% upside from the stock’s previous closing price. This follows a similar cut by UBS, which reduced its target price by nearly 8% earlier in the week. Both adjustments reflect growing caution among analysts about the company’s exposure to regional instability. L&T has remained a focal point for investors and analysts since the Iran-Israel-US conflict escalated on February 28. The company’s significant business presence in West Asia has made it vulnerable to disruptions caused by the crisis. According to JM Financial, L&T’s order book exposure to the region stands at 37%, with 33% of its order inflows coming from the first nine months of the current fiscal year. This highlights the company’s reliance on West Asian markets for revenue. Kotak Institutional Equities warned that the crisis could strain L&T’s near-term financials through multiple channels, including delayed projects and reduced customer spending. The firm noted that the long-term impact of the conflict on regional spending patterns remains uncertain, making it difficult to predict the extent of the company’s challenges.#ubs #west_asia_crisis #kotak_institutional_equities #larsen_and_toubro #iran_israel_us_conflict
