L&T shares rise 2% after Hydrocarbon Onshore business wins ₹15,000-cr order

Larsen & Toubro's Hydrocarbon Onshore business has secured an 'ultra-mega' order to set up a Natural Gas Liquids plant and allied facilities in the Middle East

Shares of Larsen & Toubro Ltd. rose nearly 2 per cent after it bagged orders of more than ₹15,000 crore for the Hydrocarbon Onshore Business

 

The construction major's stock rose as much as 1.79 per cent during the day to ₹3,796.4 per share, the biggest intraday rise since October 3 this year. L&T stock pared gains to trade 1.5 per cent higher at ₹3,787 apiece, compared to a 0.43 per cent advance in Nifty 50 as of 11:11 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at less than 1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 4.7 per cent this year, compared to a 6.3 per cent advance in the benchmark Nifty 50. L&T has a total market capitalisation of ₹5.2 trillion.  

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L&T Energy Hydrocarbon Onshore wins ultra-mega order 

Larsen & Toubro's Hydrocarbon Onshore business has secured an 'ultra-mega' order to set up a Natural Gas Liquids (NGL) plant and allied facilities in the Middle East, according to an exchange filing. The project is being executed in a consortium with Greece-based Consolidated Contractors Group S.A.L. (CCC). The company classifies 'ultra mega' as orders worth over ₹15,000 crore. 

 

The scope of the project includes engineering, procurement, construction, installation, and commissioning of the NGL plant for processing Rich Associated Gas (RAG), along with all associated utilities, offsite facilities, and integration with existing infrastructure.

 

Under the consortium arrangement, L&T will serve as the lead partner, handling engineering and procurement, while CCC will manage the construction activities. The RAG will be sourced from both offshore and onshore oil fields for processing at the new plant, the company said. 

 

"The ultra-mega order reaffirms L&T’s position as a trusted partner in delivering mega energy infrastructure. It underscores our growing global footprint and ability to execute projects of high complexity in partnership with leading players like CCC," Subrahmanyan Sarma, chairman and managing director of L&T, said. "We deeply value the confidence reposed in us and remain committed to creating long-term value through safe, sustainable and timely execution."

 

Last week, the company said that the Buildings & Factories (B&F) vertical has secured an ₹5,000 crore-10,000 crore order for one of the largest proposed IT parks with a development of 5.9 million sq feet at Bengaluru. The company, however, did not disclose the name of the company it has received the order from.

 

Last month, analysts at JM Financial Institutional Securities said they had estimated that L&T can achieve a Return on Equity (ROE) level of 17.3 per cent in FY26E (1QFY26 was 17.0 per cent), modestly short of the 18 per cent FY26 target set by management.  The brokerage firm has a ‘buy’ rating on L&T and a target price of ₹4,313 per share.