Shares of Larsen and Toubro gained in early trading on Thursday after several global and domestic brokerages reaffirmed positive views on the engineering and infrastructure major, even as they acknowledged rising near term risks linked to geopolitical tensions in West Asia.

The stock was trading around ₹3,931.3 in the opening minutes of trade, up about 1.25 percent from the previous close. The uptick came after the stock had declined in the previous session as markets reacted to escalating geopolitical developments in the Middle East, a region that represents a significant portion of Larsen and Toubro’s order book exposure.

Brokerages tracking the company maintained a broadly constructive stance on the stock but moderated their target prices to factor in possible disruptions to project execution in the region. Despite the adjustments, analysts believe the underlying investment thesis for the company remains intact, driven by strong infrastructure demand, diversified project capabilities and continued order inflows.

Global brokerage Jefferies retained its “buy” recommendation on Larsen and Toubro while trimming its target price to ₹4,500 per share from ₹4,715 earlier. The brokerage highlighted that roughly 37 percent of the company’s order book is linked to West Asia, with Saudi Arabia accounting for the largest share of projects.

According to Jefferies, a temporary halt in project activity for about a month could reduce the company’s FY26 earnings per share by roughly 6–8 percent. However, the brokerage noted that such disruptions are likely to be temporary in nature. If conditions stabilize in the region, the company could see a recovery supported by continued order inflows and stable operating margins.

Domestic brokerage Motilal Oswal also reiterated its “buy” rating on the stock, although it lowered its target price to ₹4,400 from ₹4,600 earlier. The brokerage estimates that around 39–40 percent of Larsen and Toubro’s order book is exposed to West Asia, making the company sensitive to geopolitical developments in the region.

This exposure has historically been a key driver of revenue growth for Larsen and Toubro, as the Middle East continues to invest heavily in large scale infrastructure, energy, and industrial projects. Countries such as Saudi Arabia and the United Arab Emirates have announced multi billion dollar development programs, creating a strong pipeline of engineering and construction contracts for global players.