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
Capital Goods Sector Update: Assessing Middle East Risk Exposure in Light of US-Iran War by PL Capital The recent escalation of tensions between the United States and Iran has sent shockwaves through global financial markets, with the capital goods sector being particularly vulnerable to the risks emanating from this region. As a leading player in the capital goods space, PL Capital has been closely monitoring the situation and assessing its potential impact on our clients' investments. The US-Iran conflict has already led to a significant increase in oil prices, which could have far-reaching implications for the global economy. With the Middle East accounting for nearly 30% of the world's oil production, any disruption to supply chains can have devastating effects on industries that rely heavily on energy inputs. In this context, companies involved in capital-intensive projects or those with significant exposure to Middle Eastern markets may be disproportionately affected by a prolonged conflict. PL Capital believes that investors should take a proactive approach to managing their risk exposure in the current environment. This involves diversifying portfolios across geographically and sectorally uncorrelated assets, as well as maintaining a hedging strategy to mitigate potential losses. In terms of specific sectors, we believe that companies involved in renewable energy, infrastructure development, and technology could potentially benefit from a shift away from fossil fuels and towards more sustainable alternatives. In the short term, however, the capital goods sector is likely to remain under pressure due to heightened uncertainty surrounding global trade policies ...#Middle_East #Oil_Prices #USIran_war #Capital_Goods_Sector #Global_Economy #Renewable_Energy #Infrastructure_Development #Technology #Fossil_Fuels
