- 11 Mar 2022
- ICICIdirect Research
L&T Construction receives three new contracts, including specialty hospitalLT - 2233 Change: 8.40 (0.38 %)
News: L&T Construction has received three new contracts (ranging from Rs.1000-2500 crore), including specialty hospital. The Railways SBU has secured an EPC order of Ircon International. The order comprises 25 kV overhead electrification, signalling and telecommunication works for 549 RKM, 678 TKM railway lines in the Northeast Frontier Railway. The project is part of the central government’s ‘Mission Electrification’ initiative aimed to electrify the entire Indian Railway network. Ircon International is the implementing agency for the Railway Electrification works for select networks of Indian Railways. The company's factories business secured an order from an FMCG manufacturer for a food processing facility in Gujarat. The scope involves civil, structural, architectural and Mechanical, Electrical and plumbing (MEP) utility works including external development works. Besides, L&T has secured an order to expand a specialty hospital in Kolkata with 250 beds. The built-up area of the project is 2.61 lakh square feet.
Views: L&T remains the best way to play the capex recovery theme in India given its strong execution capability, presence across diverse sectors and geographies, which makes it less vulnerable during down cycles. Focus on monetisation of non-core assets, improving RoEs and reducing debt make it an attractive portfolio bet to ride the infrastructure and manufacturing cycle revival theme.