Larsen & Toubro gains 3%, nears record high; what's driving infra stock?

L&T hit 10-month high of ₹3,837.95 is quoting close to its all-time high level of ₹3,963, touched on December 10, 2024.

Larsen & Toubro (L&T) share price today

 

Shares of Larsen & Toubro (L&T) hit a 10-month high at ₹3,837.95, gaining 3 per cent on the BSE in Wednesday’s intra-day trade on winning new orders. The stock price of the infrastructure company was quoting close to its all-time high of ₹3,963 touched on December 10, 2024.

 

In the past one month, L&T stock has outperformed the market by surging 7 per cent, as compared to 1 per cent rise in the BSE Sensex.

Why L&T is outperforming the market?

 

In the past one month, L&T has secured seven new contracts worth of approx. ₹40,000 crore from various companies. The company has won three large orders, two significant contracts and one each major and ultra-mega contract.

 

 

The Hydrocarbon Onshore business (L&T Energy Hydrocarbon Onshore) of L&T won an ultra-mega order for setting up a Natural Gas Liquids plant in allied facilities in the Middle East. L&T won the order in consortium with the Greece-headquartered Consolidated Contractors Group S.A.L. (Offshore) (CCC).

 

However, L&T did not specify the exact value of the contracts but as per the company’s specification, significant order is the range of ₹1,000 crore to ₹2,500 crore, large order in the range for ₹2,500 crore to ₹5,000 crore, major order between ₹10,000 crore and ₹15,000 crore and ultra-mega contract are over ₹15,000 crore.  ALSO READ | Eternal up 86% from April low; hits new high; Should you buy, hold or sell? 

Meanwhile, L&T's order backlog stood at ₹6.1 trillion in Q1FY26. This momentum is expected to continue as L&T bagged several large orders in Q2FY26 as well across segments. L&T has a significant ordering prospects of ~₹14 trillion, analysts at ICICI Securities believe L&T will surpass its order inflow guidance of 10 per cent on a larger base in FY26E. Overall, the brokerage firm expects revenue and PAT to grow at CAGR of 14.9 per cent and 16.5 per cent over FY25-FY27E.

 

The brokerage firm believes given the backlog growth and pick up in execution there remains a strong revenue growth over the medium term. With continued focus on improvement of overall return ratios and aspiration of 18 per cent ROE by 2026E looks probable. Analysts have assigned a BUY rating with target of ₹4,500 (SoTP based) for L&T stock wherein option value in the form of stakes in IT companies (LTIMindtree and L&T Tech) and L&T Finance can also add to upside.

 

Meanwhile, L&T Semiconductor Technologies (LTSCT) has signed a long-term partnership with Foxconn’s subsidiary, Hon Young Semiconductor (HYS), to jointly develop high-voltage semiconductor wafers (650V–3,300V) for automotive and industrial applications. The agreement will also allow L&T Semiconductor to use HYS’s Taiwan-based facilities for engineering and wafer production.  ALSO READ | Ola Electric shares jump 5% on likely foray into energy storage market 

This marks another major step in L&T’s expansion into the semiconductor and power electronics space, following its earlier acquisitions of Fujitsu General Electronics’ power module business (₹118.3 crore) and SiliConch Systems (₹183 crore), as well as an R&D partnership with IBM to develop advanced processors. 

 

This will help LTSCT to accelerate its presence in the high-growth power semiconductor space, especially in EVs, renewable energy inverters, and industrial drives. By combining its domain expertise with HYS’s wafer fabrication capabilities, L&T can jumpstart production and quality scaling much faster than going it alone, according to ICICI Securities.