L&T secures 'significant' order from JSW Energy; stock reacts

Larsen & Toubro Ltd (L&T) on Monday said its heavy civil infrastructure (HCI) business vertical secured a 'significant' order from JSW Energy for the execution of Pumped Storage Project (PSP) in Bhavali, Maharashtra. 

"The project is strategically located across the Nashik and Thane districts of Maharashtra and is designed to have a total installed capacity of 1500 MW, Comprising various small units," the construction major stated in a BSE filing.

"The scope of work encompasses complete execution of all civil works related to the project, including construction of approach roads, upper and lower reservoirs, water conductor system, pressure tunnels, and the underground powerhouse unit," L&T also said.

"The order reaffirms L&T's proven capabilities in delivering complex hydroelectric infrastructure and reinforces its position as a key enabler in India's quest for renewable energy. Pumped storage projects like the Bhavali PSP are pivotal to grid stability, particularly in the context of growing integration of variable renewable energy sources," the company further stated.

L&T shares were last seen trading higher after the order win, up 0.85 per cent at Rs 3,685. Technically, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 66.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 50.47 against a price-to-book (P/B) value of 7.68. Earnings per share (EPS) stood at 73.01 with a return on equity of 15.22. According to Trendlyne data, L&T has a one-year beta of 1.2, indicating high volatility.

Around 24,000 shares changed hands today on BSE at the time of writing this story. The figure was lower than the two-week average volume of 2.10 lakh shares. Turnover on the counter came at Rs 8.80 crore, commanding a market capitalisation (m-cap) of Rs 5,06,338.57 crore.