09 Apr , 2026 By : Debdeep Gupta
Shares of Larsen & Toubro Ltd fell in morning trade on Thursday, partially giving up yesterday's sharp gains, even as brokerage firm CLSA remained positive on the stock after the company emerged as the preferred bidder for a large NTPC-linked order. L&T stock was down 2 percent at Rs 3,923 in morning trade.
CLSA has an outperform call on L&T stock with a target price of Rs 4,842 per share. The brokerage said the company has emerged as the preferred bidder for a $3.7 billion NTPC tender for 4.5 GW of power equipment, which it described as L&T’s fifth-largest order. According to CLSA, the order would add around 6 percent to FY27 inflows and help cushion the impact of weaker order momentum from West Asia.
The brokerage said the win also shows the strength of the government capex theme, with 54 percent of L&T’s order book already coming from the energy segment. It added that the company has won 3.2 GW of projects over BHEL, which should help it sustain around 49 percent market share in FY27.
The weakness in the stock on Thursday comes a day after L&T had surged 7.6 percent as easing tensions in West Asia triggered a relief rally in companies seen as exposed to the region. The engineering and construction major has significant international exposure, with overseas orders contributing 55 percent of total order inflows in the first nine months of the financial year through December 2025. In the December quarter alone, international orders accounted for 49 percent of inflows, while international revenue made up 54 percent of total revenue.
That overseas exposure, especially to the Gulf region, had weighed on investor sentiment when hostilities in West Asia intensified earlier. The truce announced on Wednesday improved risk appetite sharply and helped L&T recover, as investors reassessed concerns around project disruption and execution risks in the region.
Alongside that geopolitical relief, fresh order-related news had also kept the company in focus. Separate reports on Wednesday said L&T and BHEL had emerged as the lowest bidders for two major thermal power-related packages, with L&T seen as the lowest bidder for a Rs 22,500 crore package tied to the NTPC Lara and DVC-CIL Chandrapura projects.
Even after Thursday’s decline, L&T stock remains up 28.5 percent over the past one year, sharply outperforming the Nifty 50’s 7 percent gain over the same period.
0 Comment