- 06 Apr 2022
- ICICIdirect Research
L&T Construction awarded significant contracts for transportation infrastructure business
LT - 3356 Change: -36.70 (-1.08 %)News: The transportation infrastructure business of L&T has secured various orders from prestigious clients. The business has secured an order from the Tamil Nadu Road infrastructure development corporation to construct the Chennai Peripheral Ring Road EPC-02 Package of Section-11 in the EPC mode. This work broadly includes constructing a six-lane greenfield highway of 12.80 km with flexible pavement followed by maintenance for seven years. The Railways business unit along with the substation business unit of the power transmission & distribution business has won an order from the Uttar Pradesh Metro Rail Corporation (UPMRCL) Ltd. This EPC order involves design, supply, installation, testing & commissioning of a 750 Volt DC third rail traction system, receiving substations including high voltage cabling from grid substations. The 36-month project will be funded by the European Investment Bank (EIB)
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. Reducing debt makes it an attractive portfolio bet to ride the infrastructure and manufacturing cycle revival theme
Impact: Positive