Day: May 12, 2025

Shares of Larsen & Toubro have extended the post Q4 results rally, and appreciated another 3.6 per cent in trades on Monday. The stock has now gained 7.4 per cent in the last two trading sessions. In the process, the stock is now seen trading above its 200-Day Moving Average (200-DMA) for the first time since January 8, 2025. In general, the 200-DMA is considered as a key technical indicator in determining the long-term trend of a particular stock or index. Stocks or indices quoting above this key moving average are considered bullish, and vice versa.

Meanwhile, Nomura in L&T’s post earnings research call retained its ‘Buy’ rating on the stock, but lowered the price target from ₹ 3,820 to ₹ 3,670 per share. The overseas brokerage firm believes that L&T’s core operational performance was broadly in-line, but the core margin outlook still remains lukewarm.

on-year (YoY) increase in revenue at ₹ 74,392.28 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) was up 13 per cent YoY at ₹ 8,203 crore. The management has guided for sales growth/ core EBITDA margin of 15 per cent YoY / 8.5 per cent in FY26.

Here’s a technical outlook on Larsen & Toubro stock.

Larsen & Toubro (L&T)

 Current Price: ₹ 3,565 Upside Potential: 10.8% Support: ₹ 3,515; ₹ 3,507 Resistance: ₹ 3,630; ₹ 3,660 Apart from crossing the 200-DMA, L&T stock has also given a breakout on the daily scale and is expected to trade with a favourable bias as long as the stock holds above ₹ 3,507 levels. The 200-DMA stands at ₹ 3,515.

On the upside, the stock faces an overhead resistance around ₹ 3,630 – ₹ 3,660 levels. Technical chart suggests that break and sustained trade above this level holds the key for further gains. In the event of a successful breakout, the stock can potentially rally to ₹ 3,950 levels.

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Confluence of positive geopolitical and economic developments—the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the US and China—sparked the strongest daily market rally in recent times. Tarriff issue had the pivotal role in the stock market’s consolidation over the year. Sudden easing of the US-China tariff war unlocked multiple investment avenues for investors. 

Sustained foreign institutional investor (FII) inflows, along with a resurgence in retail participation fuelled by expectations of a swift improvement in business sentiment, propelled today’s upside. However, while the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid & small caps are expected to maintain the optimism in the broad market. 

Technically, the sharp rise in the Nifty marks a continuation of the uptrend following a three-week consolidation phase. Having crossed the previous swing high of around 24,857, the index is now poised to inch towards the 25,200 level, while the 24,400–24,600 zone is expected to offer strong support on any dip.

In light of the widespread buying momentum, a ‘buy on dips’ strategy remains prudent. Investors should focus on selecting stocks based on the relative strength of specific sectors and prevailing market themes.

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Shares of Birla Corporation were locked in a 20 per cent upper circuit on Monday after it reported a 32.72 per cent year-on-year (Y-o-Y) rise in consolidated net profit in the January–March quarter (Q4FY25).  

Birla Corp.’s stock rose as much as 20 per cent during the day to an upper circuit of ₹1,268.8 per share, the biggest intraday gain since May 26, 2020. This compares to a 3 per cent rise in the benchmark Nifty50 as of 12:15 PM. The stock trades at the highest level since December last year.  

From its recent lows of ₹910, which it hit in early March, the counter has recovered by nearly 40 per cent. The stock has advanced 2 per cent this year, compared to a 4.25 per cent rise in the benchmark Nifty 50. Birla Corp. has a total market capitalisation of ₹9,781.60 crore.

The M P Birla Group’s flagship company recorded a 32.72 per cent Y-o-Y rise in consolidated net profit to ₹256.61 crore in Q4FY25. In the year-ago period, net profit had stood at ₹193.34 crore. 

Consolidated revenue in Q4FY25 stood at ₹2,863.14 crore, up 6.8 per cent from ₹2,680.13 crore in the same period last year. In Q3FY24, revenue was ₹2,272.07 crore. 

Despite a sharp increase in profit during the March quarter, consolidated revenue for FY25 stood at ₹9,312.40 crore, down 4.4 per cent. Consolidated net profit for the full year was ₹295.22 crore, down 29.8 per cent.

Cement sales by volume during Q4FY25 grew 8 per cent Y-o-Y to 5.2 million tonnes (mt). For the full year, the company sold 18.1 mt of cement, compared to 17.6 mt in the previous year—an increase of 2.5 per cent.

Birla Corp management commentary  

The company attributed the growth to “robust” quarterly production and sales by volume. “This came after three challenging quarters that had affected the entire industry. An uptick in demand and prices during the quarter led to better realisation and a higher capacity utilisation of 105 per cent in the March quarter,” it said in a statement.

Commenting on the developments, Harsh V Lodha, chairman, said, “Our capacity utilisation in central and eastern India is more than 100 per cent. We expect cement demand to grow at a CAGR of 6–7 per cent over the next few years.” 

“To improve our leadership position in high-growth markets, we are ready for the next phase of growth. The addition of fresh capacity will have a favourable impact on profitability and will reduce lead distances, with grinding units located closer to the market,” he added.

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