Indian infra major L&T hits one-month low on concerns over Mideast exposure Shares of Larsen & Toubro (L&T), India's largest engineering and construction company, plummeted to a one-month low as investors grew increasingly concerned about the firm's exposure to the Middle East region. The stock fell as much as 4.6% to Rs 1,441.45 on Friday, its lowest level since February 3. Market analysts pointed to L&T's significant presence in countries such as Saudi Arabia and Iraq, where the company has won several major contracts in recent years. With the ongoing turmoil in these regions, investors are worried about the potential impact on L&T's revenue and profit margins. L&T's Middle East business accounts for a sizeable chunk of its total revenue, with the region contributing around 15% to its overall earnings. The company has been aggressively expanding its presence in this market, having won several large-scale projects in recent years. The concerns about L&T's exposure to the Middle East come at a time when global investors are growing increasingly risk-averse amid rising tensions in the region. Saudi Arabia and Iraq have both been involved in territorial disputes with neighboring countries, while the ongoing conflict in Ukraine has also raised concerns about potential spillover effects on regional stability. In addition to its direct exposure to the Middle East, L&T's performance is also closely tied to India's overall economic growth prospects. As the country's largest engineering and construction company, L&T is heavily reliant on government infrastructure spending to drive its business. With the Indian economy expected to slow down in the coming quarters, investors are growing increasingly cautious about L&T's ability to maintain its revenue growth momentum. Despite the concerns, many analysts...#India #Iraq #Ukraine #Saudi_Arabia #Middle_East #Larsen_and_Toubro
L&T Shares Down Nearly 10% in Two Sessions - Here's What Worries the Street The shares of Larsen & Toubro (L&T) have fallen by nearly 10% over the past two sessions, sparking concerns among investors. The company's stock price has plummeted by around 9.7% to Rs 1,434.35 per share as of Monday morning, according to data available on the BSE. Analysts point out that the recent fall in L&T shares is largely driven by investor concerns over several key factors. Firstly, there are worries about the potential impact of a US-Iran war on global trade and economic growth. As one of India's largest engineering and construction companies, L&T has significant exposure to international markets, including Iran. Secondly, investors are worried about the company's recent performance. L&T reported a 15% year-on-year decline in net profit for the September quarter, largely due to slower-than-expected order inflows from the infrastructure sector. The company had also seen its net debt increase by around 25% during the same period. Thirdly, there are concerns about the impact of the ongoing liquidity crisis on L&T's working capital requirements. With many banks and non-banking financial companies (NBFCs) facing difficulties in raising funds, investors are worried that L&T may face challenges in meeting its short-term obligations. Lastly, some analysts are pointing to the recent decline in crude oil prices as a potential concer...#India #BSE #Iran #net_profit #liquidity_crisis #energy_sector #USIran_war #Larsen_and_Toubro #engineering_and_construction_companies #infrastructure_sector #order_inflows #net_debt #working_capital_requirements #banks #nonbanking_financial_companies #NBFCs #crude_oil_prices
