Larsen & Toubro Soars 5% After Securing ₹10,000 Crore Orders from Middle East & North Africa
Larsen & Toubro: Mumbai, India – Engineering and construction giant Larsen & Toubro Limited (L&T) witnessed a strong rally in its stock price, surging 5% in intraday trade after securing major work orders worth ₹10,000 crore from the Middle East and North Africa (MENA) region.
This latest contract win further strengthens L&T’s position as a global leader in Engineering, Procurement, and Construction (EPC) solutions, highlighting its robust execution capabilities and growing international presence.
Stock Market Reaction: L&T Gains 5%
L&T’s stock saw a significant boost following the announcement, reflecting positive investor sentiment. As of the latest trading session:
- Current Price: ₹3,439 per share
- Previous Close: ₹3,287.25 per share
- Market Capitalization: ₹4,72,928 crore
- 52-Week High/Low: ₹3,964 / ₹3,175
This impressive movement underscores strong market confidence in L&T’s ability to execute large-scale projects while maintaining consistent financial growth.
Major Contract Win: Expanding Global Footprint
L&T’s Minerals & Metals division has secured a large-scale project in the Middle East & North Africa (MENA) region, encompassing the engineering, supply, erection, and construction of a Pellet Plant and a Direct Reduction of Iron (DRI) Plant.
This order, valued between ₹5,000 crore to ₹10,000 crore, will be executed using globally recognized technologies. This strategic project will further cement L&T’s reputation as a preferred partner for large-scale industrial and metallurgical projects.
About Larsen & Toubro Limited
Larsen & Toubro Limited is a multinational conglomerate operating in over 50 countries, primarily engaged in engineering, procurement, and construction (EPC) solutions across diverse industries. The company has a strong presence in Infrastructure, Hydrocarbon, Power, Information Technology, Defence, and Financial Services.
With a history of delivering complex, large-scale projects, L&T remains one of the most trusted names in India’s industrial and engineering landscape.
Robust Order Book Strengthens Growth Prospects
L&T’s order book remains solid, ensuring revenue visibility for the upcoming quarters. The company’s total order book stands at ₹5,642 billion, with a well-diversified geographical and sectoral split:
Order Book Distribution:
- International Orders: 42% (₹2,375 billion)
- Domestic Orders: 57.9% (₹3,267 billion)
Segmental Breakdown:
- Infrastructure Projects: 64%
- Energy: 26%
- Hi-Tech Manufacturing: 7%
- Others: 3%
Geographical Breakdown:
- India: 58%
- Middle East: 35%
- Rest of the World: 7%
This well-balanced order book, combined with L&T’s superior execution capabilities, positions the company for continued revenue and profit growth.
Financial Performance: Strong Revenue Growth
L&T has demonstrated consistent financial performance, with strong revenue and profit growth.
| Financial Metric | Q3 FY24 | Q3 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹55,128 Cr. | ₹64,668 Cr. | 17% |
| Net Profit | ₹3,593 Cr. | ₹3,974 Cr. | 10.6% |
This steady increase in revenue and profitability reflects the company’s strong execution and demand for its services across domestic and international markets.
Key Financial Ratios
L&T’s financial strength is evident through key financial ratios:
| Metric | Value |
|---|---|
| Stock P/E | 34.1 |
| Book Value | ₹649 |
| Dividend Yield | 0.81% |
| Return on Capital Employed (ROCE) | 13.4% |
| Return on Equity (ROE) | 14.7% |
| Debt-to-Equity Ratio | 1.41 |
| Industry P/E | 30.5 |
| Total Debt | ₹1,26,183 Cr. |
| PEG Ratio | 4.18 |
| Intrinsic Value | ₹1,468 |
| Graham Number | ₹1,216 |
| Piotroski Score | 7.00 |
These metrics highlight L&T’s strong fundamentals, steady earnings growth, and disciplined capital management.
Conclusion: L&T Well-Positioned for Future Growth
L&T’s latest ₹10,000 crore order win reinforces its leadership in engineering and construction, while its robust order book and strong financials ensure long-term growth.
With a diversified business model, global reach, and consistent financial performance, L&T remains a top choice for investors looking for steady returns in the infrastructure and industrial space.
As the company continues to expand its presence domestically and internationally, its stock remains well-positioned for further upside, making it a strong contender for long-term wealth creation.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.