Shares of engineering and construction giant Larsen & Toubro (L&T) climbed nearly 1% during Friday's trading session on January 2, reaching a fresh 52-week peak of ₹4,164.20. This upward movement was fueled by the company's announcement of securing significant new contracts, including a major order from the state-owned Steel Authority of India (SAIL).
Major Order Win from SAIL Boosts Order Book
In a filing to the stock exchanges, L&T revealed that its minerals and metals (M&M) business vertical has won "major" orders from SAIL and other domestic clients. These orders pertain to engineering, procurement, and construction (EPC) projects as well as product supply within the Indian metals sector. The company classifies any contract valued between ₹5,000 crore and ₹10,000 crore as a "major" order.
The order from SAIL is part of the latter's ambitious plan to modernize and expand its IISCO Steel Plant located in Burnpur, West Bengal. The key objective is to ramp up the plant's crude steel production capacity from the current 2.5 million tonnes per annum (MTPA) to 6.5 MTPA.
L&T's M&M division has been entrusted with the complete engineering, procurement, and installation scope for critical process units. This includes the Coke Oven Battery, By-Product Plant, and Basic Oxygen Furnace. Additionally, the order encompasses a specialized package for material-handling equipment. These facilities will form the core infrastructure of the new steel complex.
Decades-Long Partnership and Technical Expertise
Highlighting the deep-rooted collaboration between the two industrial behemoths, L&T stated that it shares a long-standing relationship with SAIL spanning several decades. This partnership has been instrumental in executing numerous metallurgical projects across India, contributing to the growth of the nation's steel manufacturing ecosystem through innovation and sustainable development.
"The trust placed in L&T by SAIL once again validates our expertise in delivering complex, technology-intensive projects under challenging schedules," said T Kumaresan, Senior Vice President & Head – Minerals & Metals at L&T. He added that these wins reaffirm the company's commitment to timely project delivery, technical prowess, and end-to-end execution capabilities for complex process packages.
Beyond the SAIL contract, the M&M business has also secured several other orders for advanced material handling equipment like stacker reclaimers and wagon tipplers from various clients across India. This underscores L&T's dominant position in providing sophisticated and reliable solutions across the minerals and metals value chain.
Strong Order Pipeline and Stock Performance
This latest order win further strengthens L&T's already impressive order book. The company recently secured three orders worth a combined ₹15,000 crore in just four days. As of the September quarter, L&T's total order book stood at a staggering ₹6.67 lakh crore (₹667,000 crore). A robust order pipeline enhances future revenue visibility and signals strong, sustained demand for the conglomerate's services.
L&T's stock has demonstrated remarkable resilience, trading in positive territory even amid broader market weakness. It has delivered multibagger returns of over 220% in the past five years. The stock's 52-week low is ₹2,965.30, recorded on April 7, 2025.
Technical Analysis Points to Further Upside
According to Anshul Jain, Head of Research at Lakshmishree, L&T's stock chart shows a promising technical setup. He noted that the stock completed a powerful weekly continuation pattern, characterized by a seven-week pole followed by a tight, nine-week low-volume flag formation.
The recent breakout above the ₹4,100 level confirms the pattern's resolution with ideal volume activity, indicating strong institutional support. Jain observed that the moving averages have aligned beneath the current price, creating a solid foundation for the next leg of the uptrend.
"As long as the stock sustains above the breakout zone, the setup projects an immediate upside toward the 4900 to 5000 zone. Any pullback toward the EMA cluster is likely to find demand rather than supply," Jain explained. The momentum structure across different timeframes remains positive without any signs of distribution, he added.
