Larsen & Toubro shares: Received an order worth Rs 2500 crore, yet shares fell by 3%; find out why?:Shares of Larsen & Toubro (L&T) fell by 3 percent on Friday, while the company has received domestic orders worth about Rs 2500 crore.

News Topical, Digital Desk : Larsen & Toubro (L&T) shares fell nearly 3% on Friday, March 27, despite receiving a large order worth ₹2,500 crore. Experts attribute this decline to geopolitical tensions in West Asia. The company's 'Buildings & Factories' vertical has secured several large projects in the range of ₹1,000-₹2,500 crore in states like Gujarat and Andhra Pradesh.

Projects awarded to the company

Gujarat- Design and construction of a floor glass plant.
Andhra Pradesh – Construction of a state-of-the-art manufacturing plant for a major two-wheeler company.
Assam- Water management project worth Rs 1000-2500 crore in Guwahati.

Why did the shares fall?

The war between Iran, Israel and America and the tension spread in West Asia due to this has had a negative impact on the sentiment of investors.
Approximately 25% of L&T's order book comes from the Middle East, and 75% of the company's international business also depends on this region. Therefore, a war-like situation there is likely to adversely impact project execution and margins.
The war in Iran has driven up crude oil prices, raising fears among investors that input costs for infrastructure companies will also rise significantly.
Due to global uncertainty, selling was seen not only in L&T but in the entire Indian stock market.