The stock hit an intraday high of ₹4,194.7 apiece on Monday. In hopes of the potential deal announcement over the weekend, the stock had already ended with gains of 5% last Friday.
With this move, shares of L&T have now risen in four out of the last five trading sessions.
The stock has witnessed volatility ever since the Iran war started on February 28, resulting in it declining 23% to hit a 52-week low of ₹3,288.1 apiece on March 23. The stock reclaimed the ₹4,000 mark after 20 sessions on April 8, when it gained 8%, reporting its biggest single-day gain since February 2021. That was the day when the US and Iran had announced a ceasefire.
It is now just 2% away from its February 27 closing price of ₹4,278.3 apiece.
How Much Exposure Does L&T Have In West Asia?
L&T, India’s largest infrastructure company, has significant exposure to the West Asia region.
The stock gained on Monday after the US and Iran announced a peace deal, bringing the four-month war in the West Asia region to an end. The two countries are set to ink the peace deal on Friday, June 19, following which the Strait of Hormuz will reopen for shipments.
In the first nine months of the financial year 2026, L&T had a 37% order book exposure to West Asia and 33% to order inflows. A total of 49% of its consolidated order book was from its international business, of which 80% was from UAE, Saudi Arabia and the Gulf region.
As part of its financial year 2027 guidance, L&T said that the first and second quarter of the financial year may see disruptions due to the delayed shipments.
However, it maintained its topline growth guidance of 10% to 12% and the margin figure to remain at 8.3%, similar to that in financial year 2026.
Despite the disruptions, L&T still expects its order inflow to grow between 10% and 12% this financial year.
L&T On Future Outlook
The company’s chairman and managing director S N Subrahmanyan said L&T has largely met its Lakshya 26 targets and will now embark on its next strategic roadmap — Lakshya31 — with a focus on AI, digital technologies, green energy and semiconductors.
The company’s president, whole-time director and CFO, Shankar Raman, recently told CNBC-TV18, that the company’s projects business, which accounts for the bulk of revenue, is expected to grow around 15%, supported by its scale, expanding global presence and engineering capabilities.
L&T shares were trading 3.6% higher at ₹4,194 apiece at 10.10 am on Monday. The stock has risen 7.3% in the past month and is up 1.3% this year, so far.
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