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Goldman Sachs has upgraded Larsen & Toubro (L&T) to a 'Buy' rating and increased its target price to ₹5,000, reflecting a nearly 25% upside from the current market price of ₹4,003. The upgrade is attributed to improved long-term growth visibility, with expanding opportunities in defence, green hydrogen, and nuclear power.

Goldman Sachs estimates these sectors will provide a combined total addressable market of approximately ₹1.4 trillion (US$16 billion) by FY26E, projected to grow to ₹3.4 trillion (US$38 billion) by FY35E. The brokerage also noted L&T's robust order backlog and improved sentiment regarding domestic capital expenditure recovery. It anticipates low double-digit revenue growth and mid-teens profit after tax growth over the next five years, supported by margin stability and high-value projects.