Larsen & Toubro shares rise 1% today as company wins large hydrocarbon order worth Rs 2,500-5,000 crore

Larsen & Toubro Ltd

• L&T shares up 1% after securing large hydrocarbon order from Petronet LNG
• Order includes LNG, ethane, and propane storage tanks at Dahej complex, Gujarat.
• L&T clarified recent Kuwait project reports did not affect its order book

Did our AI summary help?

Shares of Larsen & Toubro Ltd (L&T) rose as much as 1 percent on Friday after the engineering and construction major announced a ‘large’ order win for its hydrocarbon onshore business, helping steady sentiment following recent volatility around overseas project-related headlines.

L&T stock was trading 1.02 percent higher at Rs 3,905.4 in morning trade on NSE. At current levels, the stock is up about 11.3 percent over the past one year, broadly in line with the Nifty 50’s gains. The company commands a market capitalisation of around Rs 5.36 lakh crore. L&T stock trades at a price-to-earnings multiple of about 32.7 times.

In an exchange filing on Friday, L&T said its hydrocarbon onshore business vertical has secured a large order from Petronet LNG, a joint venture promoted by ONGC, Indian Oil, GAIL and BPCL. The project will be executed on a lump-sum turnkey basis and involves engineering, procurement, construction and commissioning of LNG/ethane and propane double-wall storage tanks at the Dahej petrochemical complex in Gujarat.

The scope of work includes a 170,000 cubic metre LNG/ethane storage tank and a 140,000 cubic metre propane storage tank, along with ethane and propane handling and despatch facilities to support the downstream propane dehydrogenation and polypropylene plant. L&T classified the contract as a ‘large’ order, implying a value in the range of Rs 2,500 crore to Rs 5,000 crore.

The project forms part of India’s first petrochemical complex integrating cold energy utilisation from an LNG terminal and is aimed at strengthening domestic petrochemical manufacturing capacity.

Friday’s order announcement comes after L&T earlier this week sought to reassure investors over reports related to possible cancellation of oil project tenders in Kuwait. The company had clarified that the projects referred to in those media reports were not part of its order book, following which the stock had pared intraday losses.

L&T has also remained in focus in recent sessions after announcing another ‘large’ order earlier this week for its heavy civil infrastructure business, involving the construction of India’s largest pumped storage project in Maharashtra.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.