L&T wins 'significant' offshore order for its hydrocarbon business from ONGC

Larsen & Toubro, the engineering and infrastructure conglomerate has won an order from the Oil & Natural Gas Corporation (ONGC) Ltd. for an offshore project off India's west coast, it said in an exchange filing.

The scope of work in this order includes engineering, procurement, construction, installation and commissioning of new Process Gas Compressor (PGC) modules at ONGC's Mumbai High & Tapti offshore locations along with upgrading its existing facilities to enhance production.

L&T has classified the order as "significant," meaning that the order value range is between ₹1,000 crore to ₹2,500 crore.

The Hydrocarbon vertical of Larsen & Toubro has secured this order.

Last month, the company had won its first EPC railway systems order in ASEAN (All South East Asian Nations) for the Jakarta MRT. It will be constructing the Jakarta Mass Rapid Transit (MRT) Project Phase 2A through its long-term Japanese partner Sojitz Corporation.

L&T had classified that order as "significant" as well. Brokerage firm CLSA has maintained its "buy" recommendation on L&T with a price target of ₹4,360.

CLSA expects L&T to beat its own and the brokerage's order inflow estimates led by large Indian orders.

"While the market is worried of Middle East (ME) orders post-Aramco’s advisory, L&T’s core right to win is its diversified portfolio & market, driving its sector-leading growth & is a reason for its premium valuation," the brokerage wrote in its note.

Shares of L&T have surged to the highest point of the day, currently trading 0.9% higher at ₹3,673. The stock is up 70% over the last 12 months.