The brokerage in its note said that L&T is all set to win its fifth largest order as on Wednesday it emerged as the preferred bidder for a $3.7 billion power equipment bulk tender driven by NTPC to source 4.5 GW of equipment.
This order validates the thesis of strong central and state government company capex and L&T emerging as a global energy infrastructure builder with 54% of its orderbook coming from the energy domain.CLSA added that this order should account for 6% of CLSA’s inflow estimates for the financial year 2027 and help mitigate the near-term slowdown in West Asia orders.
L&T beat BHEL to win the 3.2 GW of power projects to sustain its FY26 49% share in FY27 as well, according to the brokerage note. However, the company is yet to make an official announcement in this regard.
The spotlight has been on the L&T stock ever since the Iran war started due to the infrastructure company’s significant exposure to West Asia. This had resulted in the stock entering bear market territory.As much as 49% of its consolidated order book was from its international business and of this, 80% came from Saudi Arabia, UAE and the Gulf region.
Two weeks ago, L&T had updated that 95% of its 100 operating sites in the region in all segments were business as usual, while 5% were either suspended or disrupted.
The stock surged as much as 8% on Wednesday, its biggest single-day gain since February 2021, and crossed the ₹4,000 mark after 20 trading sessions — as a result of the two-week ceasefire agreed to by Iran and the US.
Of the 34 analysts who have coverage on L&T, 29 have a ‘buy’ rating, four have a ‘hold’ rating and one has a ‘sell’ rating.
L&T shares were down 1.9% at at ₹3,930 apiece at 9.50pm on Thursday. The stock has recovered the previous month’s losses and is now up 2.3% in the past month but is down 5.1% this year, so far.
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