L&T Wins Multiple High-Value Orders, Including West Bengal Power Utility

Indian engineering and infrastructure conglomerate Larsen & Toubro Ltd. (L&T) has been on a winning streak, securing a series of significant orders in various sectors. In the past three days alone, L&T has announced three major contracts, signaling robust growth in its business.

L&T's Power Business Secures Key Order in West Bengal

Indian engineering and infrastructure giant, Larsen and Toubro Ltd (L&T), has announced its power business arm, L&T Energy – Power has successfully secured a substantial order from the West Bengal Power Development Corporation Ltd, although the specific value of the deal remains undisclosed but the order range could be  ₹1,000 crore to ₹2,500 crore.
The project involves the installation of wet Flue Gas Desulphurization (FGD) systems for the Sagardighi thermal power plant operated by the West Bengal Power Development Corporation, this represents L&T's first FGD project with a state-owned power utility.

The project entails setting up three FGD absorbers to serve four thermal power units (2x300 MW and 2x500 MW). Additionally, L&T will handle the installation of the balance of plant systems for five units within the power plant. These measures align with the guidelines set by the Environment, Forest, and Climate Change Ministry to reduce sulfur dioxide (SO2) emissions.

Other Recent Developments

In addition to the power project, L&T's construction division also secured a 'large' order from the Municipal Corporation of Greater Mumbai, involving the construction of a 4.5 km-long bridge.

Residential Township in Bengaluru

L&T's buildings and factories business has secured an order to construct a large residential township in Bengaluru. The project involves constructing 3,627 apartments spread across 19 towers, ranging from three basements to 23 to 41 floors. It also includes 88 villas with clubhouses, swimming pools, and other facilities. The entire project will cover roughly 9.7 million square feet of space. L&T doesn't reveal the exact amount, but it considers orders between ₹2,500 crore and ₹5,000 crore.

Commercial Towers in Hyderabad

The company has also received orders from a prominent developer to construct commercial towers in Hyderabad. This project involves the construction of two buildings with a combined built-up area of 4.2 million square feet.

Super Specialty Hospital and Academic Block in Kanpur

Also, L&T has secured an order from the Indian Institute of Technology, Kanpur, to build a super-specialty hospital and academic block. This project involves the construction of a 500-bed hospital block and an academic facility, marking the first super-specialty hospital with a medical college campus in India. It is expected to play a vital role in medical research and the training of future medical professionals. Other than these orders, last week company's heavy civil infrastructure business secured an order worth over ₹7,000 crore from the Mumbai Metropolitan Region Development Authority (MMRDA), further boosting its order book.

Investors and analysts have taken note of L&T's impressive performance brokerage firm CLSA raising its price target for the company to ₹3,600. CLSA expressed confidence in L&T's outlook, suggesting that it may achieve 50% of its order inflow guidance for the fiscal year 2024 in the first half of the year. Also, CLSA revised its estimates for L&T's Engineering and Construction segment for fiscal years 2025-2026, increasing the Earnings Per Share (EPS) forecasts by 4 to 5%. Not only this also raised the order inflow projection for the current financial year by 5%.

Following recent positive news, L&T's stock price has surged by 2.49% compared to Wednesday's close. Over the past six months, it has gained 36%, and in the last year, it has risen by a remarkable 62%. This signifies the market's confidence in L&T's performance and potential.