Orders | Qty | Bid |
---|---|---|
4 | 121 | 3617.2 |
1 | 39 | 3617.1 |
1 | 39 | 3617 |
2 | 78 | 3616.9 |
2 | 57 | 3616.7 |
Ask | Qty | Orders |
---|---|---|
3617.7 | 3 | 14 |
3617.8 | 1 | 5 |
3617.9 | 1 | 14 |
3618 | 2 | 26 |
3618.2 | 1 | 16 |
Larsen & Toubro Ltd (L&T) is India’s largest EPC and capital goods company, with a domestic and MENA-focused international order book. It also operates a thermal plant, Hyderabad Metro, and generates steady cash flows from its IT and NBFC businesses.
The government has announced a capex target of FY26 that would be directed toward railways, roads, defence, energy, and rural/urban development. In parallel, PSUs & private companies are ramping up capacities under the PLI and ‘Make-in-India’ schemes. With its proven track record in infrastructure and expertise in complex engineering projects, L&T is well-positioned to benefit. It is also expanding in the MENA region, where regional governments are boosting capex in hydrocarbons, green energy and power.
The DP segment of L&T —comprising Nabha Power and Hyderabad Metro—has been impacted by weak metro performance. However, monetization of real estate parcels and gradual ridership recovery aided financials.
L&T’s expertise in establishing green hydrogen plants positions it advantageously to capitalize on the promising growth prospects for green hydrogen in India.
Diversified Business Portfolio: L&T operates across a diverse range of high-growth sectors, including construction, engineering, infrastructure, defense, technology, IT/ITES, and finance. This broad diversification reduces risks associated with dependency on any single industry. Moreover, its strong presence in infrastructure and capital goods positions L&T as a fully integrated, one-stop EPC solution provider, offering a distinct competitive edge over its peers.
Strong Backlog of Orders: The company has a substantial order book across various segments, which provides long-term visibility and growth potential. This backlog ensures a steady revenue stream.
Robust Infrastructure Play: L&T is a leader in India’s infrastructure development, benefitting from large-scale projects like smart cities, roads, and renewable energy, which are supported by government spending.
Track Record of Execution: L&T has a proven track record in executing large, complex projects on time and within budget. This is a critical factor for investors seeking stability.
Defensive Characteristics: Due to its exposure to IT/ITES services, through LTI Mindtree and LTTS, the company generates stable cash flow and tends to be less volatile, making it a more stable stock, especially in uncertain economic environments.
Focus on Innovation: The company continues to focus on innovation and technological advancements, particularly in energy, defence and automation solutions, which helps it stay ahead in competitive sectors.
Healthy Balance Sheet: L&T consistently maintains strong cash flow, a solid balance sheet, and stable profitability, making it an attractive option for conservative investors seeking financial stability.