Multibagger civil construction stock secures significant order for urea plant in Australia!

Larsen & Toubro Limited is a global conglomerate primarily focused on delivering engineering, procurement, and construction (EPC) solutions across vital sectors including Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services. Its operations span both domestic and international markets.

In today’s trading session, Larsen & Toubro witnessed a notable rise of 0.91% in its share value. This surge was primarily attributed to the company’s securing of a significant contract worth Rs 1,000 - Rs 2,500 crore.

The collaboration between global giants is shaping the landscape of industrial advancements, as evidenced by the recent contract awarded by The Saipem & Clough JV (SCJV), based in Australia, to L&T Energy Hydrocarbon. This significant contract revolves around the fabrication and supply of process and pipe rack modules for a groundbreaking urea plant owned by Perdaman Chemicals and Fertilisers Pty Ltd.

The comprehensive scope of this project encompasses the production of approximately 50,000 metric tons of modules, scheduled for completion within a 32-month timeline.

These intricate modules are slated for manufacturing at L&T’s cutting-edge Kattupalli Modular Fabrication Facility before they embark on a journey to the Australian project site. Here, they will be fully tested and meticulously prepared for seamless installation.

In a testament to their prowess, L&T Heavy Engineering has achieved a remarkable feat by securing multiple orders for the extensive Urea Equipment package within the same project. This comprehensive package encompasses crucial components like Urea Reactors, Carbamate Separators, Carbamate Condensers, and Urea Strippers.

This achievement serves as a testament to L&T’s dominant position in the realm of manufacturing and supplying urea equipment, enriched by the utilization of Snamprogetti ™ Technology.

The sheer magnitude of the equipment package becomes evident when considering the impressive 1,160 metric tons of equipment slated for gradual delivery over a span of 25 months.

These awards stand as a testament to L&T’s unwavering commitment and unswerving reliability. Their achievement is even more notable given the intense global competition they faced. The confidence displayed by both Perdaman and SCJV in L&T’s capabilities underlines the company’s stature and expertise on the international stage.

Commenting on the occasion, Subramanian Sarma, Whole Time Director & Senior Executive Vice President (Energy) said, “This project award is yet another testament to our capabilities, reinforcing our position among the leading module fabricators globally. This milestone aligns with our strategic goal of expanding geography and client base and underscores our commitment to extend the concept of modularization to onshore projects.”

The stock has witnessed significant buying activity as it has surged more than 167% in the last 3 years.

Keep your eye on this trending civil construction stock

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions…