L&T -Larsen Toubro Share Crash: These are the 3 reasons due to which L&T's share fell, what will happen next?:L&T -Larsen Toubro Share Crash: L&T shares saw a sharp decline during trading on Tuesday morning.

News Topical, Digital Desk: Larsen & Toubro (L&T) shares saw sharp pressure on January 13th. Reports suggest that Kuwait is discussing the cancellation of a major oil project tender worth approximately $8.7 billion, directly impacting L&T, as the company was among the lowest bidders in several high bids. Following this news, the stock fell 3% to a one-month low. The stock has seen continued weakness over the past few days, having hit a new 52-week high in early January.

L&T shares saw a sharp decline during trading on Tuesday morning. The company's stock fell nearly 3% to ₹3,911, its lowest level in over a month.

This decline comes at a time when some media reports claim the Kuwait government is considering canceling oil project tenders worth $8.7 billion. Investors began selling L&T shares as soon as this report hit the market.

Major Question on Kuwait Projects - L&T Lowest Bidder According to reports, bids for several projects came in well above budget. Consequently, the Kuwait government is considering canceling these contracts. According to a MEED report, L&T was the lowest bidder for projects worth over $4.5 billion in these tenders. Therefore, if these projects are canceled, it could have some impact on the company's order flow. Larsen & Toubro (L&T) today sent a formal clarification to the stock exchange. This clarification comes on media reports that the Kuwait government is considering canceling oil project tenders worth $8.7 billion, which caused L&T shares to fall.

L&T has clearly stated that the Kuwait projects mentioned in the report were not in L&T's order book. According to the company, the oil project tenders mentioned in the media report were not part of L&T's existing order book. This means that even if Kuwait made a decision on those tenders, L&T did not have any orders for those projects.

The company stated, "We cannot comment on clients' tenders or commercial decisions." L&T stated that it does not comment on the status of Kuwait's or any other client's tenders or their commercial decisions. This means that the company has categorically denied the issue linked to L&T in the report. This statement comes at a time when L&T shares fell by approximately 3% following the report. The company has asked investors to note this clarification.

Stock down 7% from 52-week high L&T stock has lost more than 4% in 5 days, while it has gained around 13% in the last six months. On January 5, the stock had made a new 52-week high of ₹4,195, but after the news, it has fallen by more than 7%. The P/E ratio of the stock is trading at 28.87, which indicates that the valuation is already high and any negative news can bring a sharp reaction.

Company's order book guidance- Confidence of more than 10% growth in FY26- In October, the company had said that it is confident of outperforming its 10% group order inflow guidance in FY26. The company has an order prospect pipeline of ₹3.57 lakh crore, which includes. -Hydrocarbons: ₹2.93 lakh crore -Carbonlite: ₹46,000 crore -Clean Energy: ₹18,000 crore International orders account for 49% of the company's order book. This data shows that the company is heavily focused on overseas projects, where news like Kuwait could have a significant impact.

L&T's latest success in West Bengal
Meanwhile, the company also announced that its Transportation Business Unit has received a major order worth ₹1,000–2,500 crore.

This contract is to build a 3.2-km cable-stayed bridge over the Muri Ganga River, which will include features such as advanced traffic systems, bridge health monitoring, and architectural lighting.

This bridge will serve as a lifeline for over two lakh people on Sagar Island and facilitate passenger movement for the Ganga Sagar Mela.

Signals for investors:
L&T's fundamental story remains strong—order book, guidance, and domestic project flow are positive. However, the news from Kuwait also makes it clear that dependence on overseas projects could increase market volatility. Stock investors will be closely monitoring updates on this matter over the next few days.