Shares of the infra and engineering major L&T gained in Thursday’s trade (March 27, 2025) by as much as 2.5 per cent at the day’s high. The gains in the stock were seen as the company won ultra-mega contract.
L&T wins ultra-mega contract
L&T’s offshore hydrocarbon subsidiary has bagged an order worth Rs 34,000 crore’s ultra mega project. This has been the company’s largest-ever order. As part of the contract, the company will build 2 offshore compression complexes on Qatar coast. Furthermore, the company’s global energy portfolio will be further strengthened.
Through the contract, the company aims to strengthen its energy portfolio.
Brokerages on L&T
Global brokerage CLSA on L&T has maintained an outperform call with a target of Rs 4,151, implying possible gains of 21 per cent from the last close. This order will enable the company to be recognised as the company bagging multi-billion dollar EPC project.
The brokerage held that amid a decreasing dependency on oil in the Middle East, L&T Energy Hydrocarbon is emerging as the beneficiary.
BNP Paribas on L&T
The brokerage maintains an outperform call on the stock but with a reduced target of Rs 4,435, implying possible gains of up to 29 per cent from the last close. The company has beaten its guided order book growth of 10 per cent with order book growth during FY25 at 15 per cent.
Also, the company’s capex in the Middle East stands robust, with the Gulf Cooperation Council project pipeline at a strong Rs 229 lakh crore.
Furthermore, the brokerage anticipates growth in EBITDA margin to 8.6 per cent from the earlier 8.3 per cent, a 30 basis points increase.
The brokerage also underscrored that the target on the stock has been reduced consdering correction in LTIMindtree stock price correction.
