Shares of Larsen & Toubro (L&T) rose over 2% on Tuesday after the infra and engineering major announced that its heavy civil infrastructure business vertical won a “significant” order from the Nuclear Power Corporation of India Ltd. for the 2×1000 Mwe Kudankulam Nuclear Power Project (KKNPP-5&6) in Tamil Nadu.
The scope of the nuclear project includes the mechanical package comprising installation of the nuclear reactor and turbine systems, sea water systems, polar and trestle cranes, as well as related equipment, accessories, piping, painting, structural steel work, supports, anti-corrosion coating, insulation, and full testing across various buildings and structures.
Shares of L&T gained 2% to Rs 3662 on Tuesday against the previous close of Rs 3585.85 on BSE. Market cap of the firm rose to Rs 5.03 lakh crore.
On Tuesday, L&T shares gained 2.33% to hit an intra day high of ₹3,675 apiece. Market participants noted the stock’s movement came in response to disclosure of the “large” and “significant” orders.
The stock has posted a 14.2% return over the last six months, reflecting positive sentiment.
L&T said, “L&T classifies orders in the ₹1,000 crore to ₹2,500 crore range as ‘significant’.” The company has not disclosed names of competitors in relation to these projects nor made projections about the broader market impact within the announcements. The awarded contracts demonstrate L&T’s continued presence in major transport and energy infrastructure projects, with implications for its business portfolio as these projects progress.
On Monday, the enginerring and construction firm said its transportation infrastructure business vertical has won a large order from the National High Speed Rail Corporation Ltd (NHSRCL) to construct 156 Route Km (RKM) of high-speed ballastless track (Package T1) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) Corridor.
The scope includes design, supply, construction, testing & commissioning of track-works, on Design-Build Lump Sum Price basis, between Mumbai (Bandra-Kurla complex) and Zaroli village in Gujarat. This also includes over 21 km of track-works in underground sections (corresponding to Civil packages of C1, C2) and 135 km of track on the elevated viaduct sections (Pkg C3).