L&T’s shares fell sharply after media reports linked the company to Kuwait’s $8.7 bn oil tender cancellations.
Background on the Kuwait Tender Rumor
News outlets claimed that Kuwait was planning to cancel oil project tenders worth $8.7 bn because many bids were above the budget. The story suggested that L&T was the lowest bidder for contracts over $4.5 bn, which sparked concern among investors.
L&T’s Official Clarification
The company said the projects mentioned in the reports are not in its order book. It also added that it cannot comment on the decisions or tender status of its clients.
Effect on L&T’s Share Price
Following the reports, L&T’s stock dropped about 4% during the day and later fell to a one‑month low of ₹3,846. Overall, the shares are down roughly 8% from the recent 52‑week high of ₹4,195 reached on January 5.
Company’s Order Book and Future Outlook
- Strong pipeline of orders worth ₹3.57 trillion in the Energy Projects segment.
- Hydrocarbon opportunities total ₹2.93 trillion, with about 93% coming from overseas.
- CarbonLite Solutions prospects are around ₹0.46 trillion, mainly domestic.
- Clean‑energy projects account for roughly ₹0.18 trillion, driven by gas‑to‑power deals.
- International orders made up 49% of the total order book as of September 30, 2025.
What Retail Investors Should Keep in Mind
While the share price has slipped about 7% in the past five days, it is still up nearly 10% over the last six months, and the stock trades at a P/E ratio of 28.87. Investors should watch how the company’s large overseas order book develops and stay aware of any further news from Kuwait.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.