Stock in Focus: L&T Share Price Rises 1.30% After Securing Solar Plant Order Of Rs 1,000 Cr – Should You Buy?

Larsen & Toubro's share price surged by over 1% today, August 4, after securing a significant deal for its Minerals & Metals business. The contract is to develop a grid-connected solar-plus-storage project in Bihar. The stock rose upto 1.30% making reaching Rs 3633.

L&T Share Price Movement:

L&T is trading at Rs 3620 on Monday, August 4, gaining Rs 30.35 or 0.85% on the Bombay Stock Exchange (BSE). The stock had opened at Rs 3589.85, hit a high of Rs 3,633, while Rs 3,580 was the lowest intraday before 12 PM. However, the stock is still far away from its 52-week high of Rs 3,963. The company's current market value (market capitalisation) is Rs 4.24 Lakh crore.

What is the Deal?

The Renewables business vertical of L&T has secured a significant order to develop a grid-connected 116 MWac Solar Photovoltaic (PV) plant integrated with a 241 MWh Battery Energy Storage System (BESS) at Kajra, Lakhisarai district in Bihar, according to the exchange file on the stock exchange.

L&T considers orders between Rs 1,000 crore and Rs 2,500 crore to be "significant."

The engineering, procurement and construction order marks an extension of the earlier phase, taking the total co-located storage capacity of the renewable generation site at Lakhisarai to 495 MWh, the largest such project awarded by a state utility in India, the filing further informs.

The deployment of a 4-hour BESS alongside intermittent solar generation will enable energy time-shifting, allowing surplus clean energy to be stored and despatched during peak demand periods.

"The initiative aligns with the Government of India's policy push for co-located renewable energy storage systems and supports the Jal-Jeevan-Hariyali Abhiyan (water, life, and greenery mission) in Bihar, while contributing to employment generation and long-term energy security," added L&T.

The Renewables business vertical had earlier secured an EPC order for a 275 MW Solar PV project in Gujarat, strengthening its portfolio of flexible, efficient and cost-effective clean energy systems.

L&T Q1 FY26 Results:

L&T's net profit for the first quarter of FY26 rose by 29% to Rs 3,617 crore, marking an increase of 30% from Rs 2,786 crore last year. The Mumbai based company's revenue went up by 15% to Rs 63,678 crore in the June quarter, compared to Rs 55,119 crore a year ago.

Larsen & Toubro showed steady performance, with its operating profit (EBITDA) rising by 12.5% to Rs 6,318 crore, up from Rs 5,615 crore in the same period last year. However, this was slightly below the expected Rs 6,362 crore.

Its operating profit margin fell to 9.9% from 10.2% last year, missing the forecast of 10.1%.

Should You Buy?

"L&T delivered strong positive surprise with order inflows at INR 945bn materially higher than our estimate of INR 566bn. We are reasonably confident of L&T exceeding its order inflow target of 10% growth based on multi-year uptick in Middle East tendering.

L&T is our top pick in the infrastructure space. We value L&T on SOTP basis at INR 4,313 which implies a reasonable core FY27 P/E of 27x (trading at 21x) for ~20% core EPS CAGR over FY25-27," said JM Financial report.

L&T share performance:

L&T share price has gone up by 3% in 2 weeks and gained almost 9% in the last 3 months. The stock is up 38% in last 2 years, 103% in last 3 years and over 292% in last 5 years. However, the stock is marginally down by 1.15% in last 1 year.

The highest price in the last 52 weeks was Rs 3963, while the lowest was Rs 2967.65.

Disclaimer
The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.