- 10 Mar 2022
- ICICIdirect Research
L&T Construction's heavy civil infra business bags significant contract from Delhi MetroLT - 2235 Change: 26.75 (1.21 %)
News: The prestigious Delhi Metro Rail Corporation (DMRC) will design and construct the underground metro project of phase· IV of Delhi MRTS. The major scope of work for the project comprises design and construction of 5 km of twin tunnel (up, down line) by shield tunnel boring machine (TBM), cut and cover tunnel box, underground ramp and four underground stations. A major part of the work is in south Delhi and must be completed within 42 months.
Impact: 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.