Kotak Equities downgrades L&T to ‘reduce’, gives Rs 3,650 target price

Kotak Institutional Equities has downgraded L&T to 'reduce' from 'add' with a target price of Rs 3,650. The brokerage sees limited upside in L&T's margins due to intense competition, no significant changes in bidding norms, and ongoing project execution challenges. While the company is focusing on completing projects faster, the risks of rework and cost overruns remain.