Engineering and construction conglomerate Larsen & Toubro (L&T) Ltd on Wednesday, October 11, said its Hydrocarbon business (L&T Energy Hydrocarbon) has recently secured a Letter of Intent (LoI) for a 'mega onshore project' from a prestigious client in the Middle East.
The scrip gained nearly 1% to hit an intra-day high of Rs 3,110 apiece on the NSE in today's trade. L&T shares have rallied 48% since the beginning of this year and is up 65% in the past one year.
About the scope of work, L&T said it involves engineering, procurement and construction of gas compression plants consisting of gas inlet facilities, gas compression system, produced water handling, propane refrigeration system, condensate transfer and utilities for gas compression facilities in the new onshore facilities and its integration with existing gas compression plants.
"To cater to the power supply requirements of the gas compression plants, 3 Nos of 230 kV extra high voltage substations will be set up by the Power Transmission & Distribution arm of L&T Construction," the company said in a filing.
“One doesn’t get to win such an order every day. This is something unique for L&T and a matter of pride for India – for we are a true Indian multinational. This also shows our capabilities to perform and deliver on time and the enormous trust that our client has on us to manage such complex projects,” said L&T Chairman and Managing Director SN Subrahmanyan.
Adding to this, Subramanian Sarma, Whole-time Director and Senior Executive Vice President (Energy), said: “Earning such a large order from a reputed customer is a reflection of our consistent commitment to excellence, quality, and customer satisfaction. We are deeply honored by customer faith and will continue to deliver execution par excellence.”
Last month, the company announced that its construction unit's power transmission and distribution business has won new orders in the Middle East, which they have classified as "large." Orders which have a value between Rs 2,500 crore and Rs 5,000 crore are classified as "large" by L&T.
Recently, global brokerage firm UBS maintained a 'buy' rating on the stock but revised its price target higher to Rs 3,600 from Rs 3,040 per share. This is also the highest price target for the engineering and infrastructure conglomerate on the street.
Apart from UBS, 11 other analysts are projecting shares of L&T to trade above the mark of Rs 3,000 going forward. Following UBS, Prabhudas Lilladher has the highest target on the street for L&T at Rs 3,302.
Out of the 41 analysts that track L&T, 38 of those have a buy recommendation, one says hold, while two have a sell recommendation on the stock.
First Published: Oct 11, 2023 1:03 PM IST
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