Larsen & Toubro hit bear market after Iran US tensions
Larsen & Toubro (L&T) shares have dropped over 20% from their 52-week high, officially hitting bear market territory.
The latest slide comes after the Iran-U.S.-Israel conflict flared up in late February, sending the stock down nearly 19% in just over a month.
Almost half order book is international
Almost half of L&T's consolidated order book comes from international business, much of it from West Asia, especially the U.A.E. and Saudi Arabia, so geopolitical tensions there are making investors nervous.
Out of 100 sites in the region, only a handful are disrupted for now, but supply chain issues from Europe and China aren't helping either.
Even so, L&T said it is not facing any issues related to collections and pushing into green hydrogen and renewables to stay future-ready.
Analysts split, L&T trades ₹3,504.7
Analysts are split: Macquarie still sees potential with a target price of ₹4,910, while UBS is more cautious at ₹4,150.
Right now though, L&T shares are trading much lower at ₹3,504.7, so it's definitely a wait-and-watch situation for investors.