The Power Transmission & Distribution vertical of Larsen & Toubro Ltd. has secured a 'significant contract' to build a 185-megawatt grid-connected solar photovoltaic plant and a battery energy storage system in Bihar, according to an exchange filing. While the exact value of the order was not disclosed, L&T classifies contracts between Rs 1,000 crore and Rs 2,500 crore as significant.
The solar PV plant at Kajra in Lakshisarai district will be a key element in Bihar's plans to harness renewable energy for sustainable energy solutions aimed at combating climate change and meeting demand growth.
The battery energy storage system, with a capacity of 254 megawatt-hour will enable storing solar energy during low-demand periods and discharging when demand peaks.
In addition, the storage system will also help smooth the fluctuations in generation, frequency regulation, and voltage support. It comes with black start capability for the grid, allowing for quick re-energisation after an outage.
Shares of L&T rose as much as 0.88% during the day to Rs 3,566 apiece on the NSE. It was trading 0.86% higher at Rs 3,565.45 apiece, compared to a 0.16% advance in the benchmark Nifty 50 as of 1:23 p.m.
The stock has risen 49% in the last 12 months. The relative strength index was at 48.
Thirty out of the 35 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 9.4%.
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