L&T Shares Surge 2% After Massive Project Win In The Middle East

Larsen & Toubro (L&T) saw its shares jump by 2% on Thursday, reaching a high of ₹3,623.25 on the Bombay Stock Exchange. This came after the announcement of snagging a significant pipeline project in the Middle East. Labelled as a ‘major’ win, these projects are in the big league, valued between ₹5,000 crore to ₹10,000 crore.

What Happened: L&T will handle the engineering, procurement, and construction duties for two new pipelines, equipped with modern facilities, running parallel to an existing corridor.

Just a day before, L&T revealed its Buildings & Factories division had also won a considerable project with AIIMS, Madurai, for comprehensive development works. Earlier in the month, another ‘significant’ victory came from ONGC for a project off India’s West Coast.

See also: This Bank Stock Has Slumped 24% In 6 Months, But Analysts See A 51% Rally Ahead

L&T’s recent performance at the bourses has been stellar, outshining market trends with a nearly 10% jump in the past month, and a remarkable 23% increase over six months.

Analysts, especially from BNP Paribas India, see a bright future for L&T, benefiting from India’s infrastructural push. They predict an influx of orders worth over ₹2.7 trillion by 2026, thanks to governmental investments across various sectors. L&T’s strategic exits from certain assets are expected to further bolster its financial health, aiming for a significant return on equity improvement by 2026.

Price Action: Larsen and Toubro Ltd. shares were trading 2.08% higher at ₹3,612.30 on Thursday afternoon.

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