L&T: Brokerage Stays Bullish As Shares Slip Despite Mega Order Win From NTPC

Mumbai, April 9: Shares of Larsen & Toubro declined around 2 per cent at Rs 3,914.90 on NSE on Thursday, even as the infrastructure major secured a key order from Indian coal power giant NTPC and received a positive outlook from global brokerage CLSA.

The dip in the stock reflects broader market caution and profit booking, with investors choosing to stay on the sidelines despite the fresh order win and supportive long-term commentary.

Order win fails to lift sentiment

L&T recently bagged a significant contract from NTPC, reinforcing its strong presence in the power and infrastructure segment. However, the development failed to trigger a rally in the stock, suggesting that near-term sentiment remains subdued.

Market participants appear to be factoring in existing valuations and external uncertainties, including slower order momentum in certain international markets.

CLSA sees support from upcoming inflows

Despite the stock’s decline, CLSA maintained a constructive view on L&T, highlighting that the NTPC order could contribute meaningfully to the company’s future order book. The brokerage said the order for 4.5 gigawatt of power equipment worth $3.7 billion (about Rs 3.43 lakh crore) is L&T’s fifth largest.

According to the brokerage, the deal is expected to add roughly 6 per cent to L&T’s FY27 inflows, providing visibility on revenue growth and partially offsetting weakness in orders from the Middle East.

CLSA also pointed to a strong tender pipeline, indicating that upcoming project awards could further bolster order inflows in the coming quarters.

Middle East slowdown a key overhang

One of the key concerns weighing on investor sentiment is the slowdown in order inflows from the Middle East, a region that has traditionally been an important growth driver for L&T’s hydrocarbon and infrastructure businesses.

Geopolitical uncertainties and project delays in the region have led to a moderation in new orders, prompting investors to remain cautious in the near term.

However, analysts believe that domestic opportunities—particularly in power, infrastructure, and government-led capital expenditure—could help bridge the gap.

Long-term story intact

Despite short-term volatility in the stock, brokerages remain broadly positive on L&T’s structural growth story, driven by India’s infrastructure push and improving capex cycle.

The company’s diversified order book, strong execution capabilities, and exposure to large-scale projects continue to position it as a key beneficiary of the country’s investment cycle.

For now, however, the stock appears to be caught between strong fundamentals and near-term uncertainties—where even positive triggers like order wins are not enough to immediately lift sentiment.

Investors will closely watch order inflows in the coming quarters, particularly from domestic and international markets, to gauge the sustainability of L&T’s growth trajectory.

Source:

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