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L&T extends rally on order win from Adani Power; brokerage sees more upside
Shares of Larsen & Toubro (L&T) were up 1 per cent at ₹3,712 on the BSE in Tuesday's intra-day trade, extending its previous day's gain after winning an ultra-mega order from Adani Power for 6,400MW thermal power for CarbonLite solutions business.
In the past two trading days, L&T has gained 3 per cent, and rallied 9 per cent in the past 11 trading sessions. The stock price of the civil construction major had hit a 52-week high of ₹3,963 on December 10, 2024.
L&T wins ultra mega order from Adani Power
L&T has won an ultra mega order for the supply of Boiler Turbine and Generator (BTG) along with auxiliaries for 6400 MW (800x8) thermal power plant to Adani power. The order will be executed by L&T Energy - CarbonLite Solutions (LTECLS), the company's specialized business vertical for advanced power and low-carbon technologies, L&T said.
However, L&T did not specify the exact value of the contracts but as per L&T specification, an ultra mega contract is more than ₹15,000 crore. Mega contract in the range of ₹10,000 crore to ₹15,000 crore, large contract in the range of ₹2,500 crore to ₹5,000 crore and a significant contract ranges between ₹1,000 crore and ₹2,500 crore, as per the company.
The scope of work encompasses the complete design, engineering, manufacturing, supply, and commissioning of Boiler-Turbine-Generator (BTG) packages, along with auxiliaries and associated mechanical, electrical and control & instrumentation (C&I) systems, L&T said.
Meanwhile, on July 29, 2025, the Hydrocarbon Offshore business vertical (L&T Energy Hydrocarbon Offshore) of L&T secured an ultra-mega order from a prestigious client in the Middle East.
The order encompasses multiple offshore packages, and the scope includes engineering, procurement, construction and installation of offshore structures, along with the upgradation of existing facilities.
Brokerage sees more upside on L&T stock price
Order wins will help L&T achieve targeted order inflow growth by the company. Although the company has classified this order at ₹15000 crore we believe this order is worth ~₹38,000 crore at ~₹6 crore/MW, ICICI Securities said in a note.
L&T has an order backlog of ₹6.1 trillion up 25 per cent year-on-year (YoY). Given the prospects of ~₹14.8 trillion for remaining 9MFY26E, L&T expects order inflow growth of 10 per cent for FY26E on a larger base. Overall, analysts at ICICI Securities expect revenues and profit after tax (PAT) to grow at compounded annual growth rate (CAGR) of 14.5 per cent and 19.4 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 maintain a BUY rating on L&T with a target of ₹4,380 (SoTP based).
The order prospect pipeline grew 65 per cent Y-o-Y to ₹ 15 trillion for the next nine months of FY26. Historically, L&T had a hit ratio of 20-25 per cent in the prospect pipeline, and if it maintains this hit rate, L&T could grow its order inflows far more than its FY26 guidance of 10 per cent Y-o-Y growth, according to analysts at Motilal Oswal Financial Services.
In the GCC region, L&T hopes to scale up in areas like renewable, clean energy and transmission projects and correspondingly scale up the execution of existing projects, the brokerage firm said with BUY rating on the stock and target price of ₹ 4,200 per share.
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