Construction and engineering conglomerate Larsen & Toubro (L&T) was a strong performer last year, meeting multiple guidances and delivering on strong order growth especially domestically. However, government orders have slowed in the past few months in the buildup to elections - in part as the govenrment focuses efforts and funds in courting voter demographics rather on new infrastructure project announcements. 

Technicals have weakned as analysts have pointed out to a slowing down in new order announcements. L&T share price is currently below is 30 Day SMA (1412.39) as well as its 50 day SMA (1390.52). It is still above its 200 day SMA (1332.47). Other technicals are mid-range - basically pointing to investors and traders waiting for some good news in terms of new order announcements. The company is in 7 stock screeners. 

Larsen & Toubro (L&T, which is in eleven stock screeners) has had analysts taking another look at the stock as the company's new project announcements have slowed in recent months. Analysts are increasingly expecting new project announcements to come in mostly in the next financial year. Deustche Bank research has maintained its buy call on the stock but cut its price target; its buy target now stands at Rs. 1,620 per share, down from Rs. 1,650.

Upcoming central government elections may see funds diverted into farm loan waivers and big agri giveaways, with large infrastructure projects de-prioritized. These risks are the highest for L&T in the lead-up to elections. Wavering appeal for the BJP, visible in recent state elections, may also impact project outlook in the next financial year. A new set of political parties elected in the next election could result in a relatively slow-moving coalition, or a government less focused on infrastructure development. 

Analysts however remain largely optimistic on L&T's prospects, with the average broker target on Trendlyne above current price and approximately Rs. 1,530. L&T management expects revenue growth in FY19 to be better than the 16.7% YoY growth in FY18; it expects industry growth to do well into the next financil year. 

L&T's technicals are mid-range currently and the company has seen modest share price gains in one month despite stock market volatility (+3.03% increase in share price). 

Engineering and construction conglomerate Larsen & Toubro (L&T) has been a resilient performer in recent quarters despite market upheavals, policy changes, and uncertain global growth. The company's deep diversification across businesses has helped it weather slowdowns, as government projects and domestic growth helped it manage slow project uptake in markets like the Middle East.

This reflects in its Earnings per Share (EPS) performance. L&T despite its size is among the highest QoQ EPS growth companies, as in this stock screener. Within this list its in the top 100 stocks as far as QoQ EPS growth is concerned. 

The financial upheaval in FY18 for Middle East countries as oil prices grew erratic, as well as increased protectionism in Europe, has limited project growth for L&T in these markets, and the firm compensated for this in recent quarters via domestic growth. It remains to be seen how this will hold in coming quarters and if it can keep this up - L&T has maintained its guidance.