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
HDFC Bank shares slide 4% to 52-week low, Kotak upgrades to buy Shares of HDFC Bank closed 2 percent lower at ₹840.70 on Monday, having fallen 4 percent during the trading session to reach a 52-week low of ₹821.50. The decline followed sustained selling pressure in the banking sector, though the stock partially recovered later in the day. Despite the recovery, the stock remained under pressure, reflecting ongoing investor concerns about the bank’s performance. The recent downturn marks a continuation of the stock’s underperformance, driven by worries over margin pressures and challenges in mobilizing deposits. These issues have persisted even as the broader banking sector has remained relatively stable. Analysts have pointed to the bank’s struggles with its liability-side constraints as a key factor affecting its valuation. Kotak Institutional Equities upgraded HDFC Bank to a "buy" rating, setting a target price of ₹1,050. The brokerage attributed this move to the sharp correction in the stock’s price, which has widened its valuation discount compared to its peers. While Kotak acknowledged that the business models and loan portfolios of large banks are broadly comparable, it emphasized that HDFC Bank’s ongoing challenges in managing liabilities justify a lower valuation multiple. The brokerage noted that downside risks at current price levels appear limited, but cautioned that meaningful outperformance would depend on clearer signs of improvement in the bank’s liability franchise. Kotak highlighted that any re-rating of the stock would hinge on rebuilding investor confidence in the bank’s ability to expand its net interest margins. This metric remains a critical focus for the lender as it navigates its financial strategy moving forward.#stock_market #banking_sector #hdfc_bank #kotak_institutional_equities #net_interest_margins
