L&T Secures 'Significant' Order For Global Nuclear Fusion Project
The order won by L&T involves the deployment of advanced welding technology for the assembly of critical components within the Vacuum Vessel at the ITER facility.
Larsen & Toubro Ltd. has won a 'significant' order valued between Rs 1,000 to Rs 2,500 crore from the ITER Organization, an intergovernmental body headquartered in France.
This comes after the company's stock tumbled over 3% on Friday after UBS downgraded the stock and cut target price on likely weakening of new order growth and weak near-term outlook.
This contract involves the deployment of advanced welding technology for the assembly of critical components within the Vacuum Vessel at the ITER facility, the world’s largest nuclear fusion project located in Cadarache, Southern France, the company said in an exchange filing.
L&T classifies orders valued between Rs 1,000 to 2,500 crore as significant.
In addition to the order, L&T has signed a Memorandum of Understanding with the ITER Organization for technical collaboration on the project. Under this agreement, L&T will contribute to the development of technology, essential for the construction and assembly of systems that will facilitate plasma operation within the ITER Tokamak.
The majority of the project activities will take place in the Tokamak pit at the ITER site. L&T has a history of successful contributions to the ITER project, having fabricated and delivered the world’s largest stainless-steel high-vacuum pressure vessel, known as the Cryostat, during the Covid-19 pandemic in 2020.
The ITER Organization aims to demonstrate the scientific and technological feasibility of fusion energy for peaceful applications, promoting collaboration among member countries, including India, the European Union, Japan, South Korea, Russia, China, and the United States.
L&T, with a global presence in over 50 countries and an annual revenue of $27 billion, has maintained its leadership in various sectors, including engineering, procurement, and construction, high-tech manufacturing, and services, for nearly eight decades.
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L&T Share Price Today
L&T's stock fell as much as 3.47% during the day to Rs 3,231.05 and it continued to trade on the same level as of 11:06 a.m., compared to a 1.02% decline in the benchmark Nifty 50.
It has risen 13.96% during the last 12 months. The total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 29.
Twenty eight out of 35 analysts tracking the company have a 'buy' rating on the stock, five suggest a 'hold' and two have a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 19.3%.
