L&T Shares Edge Higher On Bagging 'Significant' Order For TN Nuclear Project

Larsen & Toubro Ltd. has secured an order in the range of Rs 1,000 to Rs 2,500 crore from Nuclear Power Corporation of India Ltd (NPCIL) for 2X1000 Mwe Kudankulam Nuclear Power Project (KKNPP - 5 & 6) in Tamil Nadu, the company confirmed in an exchange filing.

Although the exact value of the order was not mentioned, L&T has labelled the order as 'significant', which amounts to a figure of anywhere between Rs 1,000 to Rs 2,500 crore.

The order will see L&T build the mechanical package for the project as well as install the nuclear reactor and the turbine system. L&T will also build the sea water systems, polar and trestle cranes and other related equipment, the company confirmed in the statement.

The order also includes full testing of the equipment installed across various buildings and structures on site. The order from NPCIL adds to L&T's reputation of delivering large-scale nuclear power projects across India.

This order will be segmented under the Heavy Civil Engineering vertical, which contributes significantly to the company's total order book. This is also part of India's renewed push for nuclear energy, which is seen as a clean alternative to fossil fuels.

The shares of L&T are trading with gains of more than 1% and are hovering near intraday high of Rs 3,626. However, on a year-to-date basis, L&T shares have given flat returns, though they have gained 16% over a six-month period.

L&T currently trades with a relative strength index of 54, which suggests neutral market sentiment. A total of 28 out of 33 analysts tracking the company have a 'buy' rating on the stock; four recommend a 'hold', while one recommends 'sell', according to Bloomberg data. The 12-month analysts' consensus target price implies an upside of 12%.