Rs 4,69,800 crore order book: This multibagger civil construction company bagged orders worth Rs 13,368 crore from Indian Air Force

The first contract, valued at Rs 5,700.13 crore involves the supply of High Power Radars (HPR) to the Indian Air Force

Larsen & Toubro Ltd (L&T), a leading Indian multinational, has secured two significant contracts with the Ministry of Defence, Government of India, valued at a combined Rs 13,368.82 crore. This news has been met with positive sentiment in the stock market, with L&T's shares reaching their highest point of the day.

Strengthening India's Air Defence with High Power Radars (HPR)

The first contract, valued at Rs 5,700.13 crore involves the supply of High Power Radars (HPR) to the Indian Air Force (IAF). These advanced radars will replace existing long-range systems and boast several key features:

• Enhanced long-range aerial surveillance with increased uptime
• Next-generation functionalities for improved accuracy and detection
• Remote operation capabilities for greater flexibility

This project, considered a turnkey contract, signifies L&T's ability to manage the entire process, from design and development to final delivery and installation. Notably, the HPR will be the first of its kind manufactured by the private sector in India, marking a significant step towards indigenous production in the country's defence sector.

Protecting Vital Assets with Close-In Weapon Systems (CIWS)

The second contract, valued at Rs 7,668.82 crore, pertains to the supply of Close-In Weapon Systems (CIWS) to the IAF. These systems are designed to safeguard critical infrastructure and assets from low-flying aerial threats, including drones:

• Air Defence Guns for direct engagement
• Tracking Radars for target identification and tracking
• Search Radars for broader situational awareness
• Command & Control Shelter for centralized command and coordination
• Simulators and communication equipment for training and seamless operation

The CIWS will be deployed at various strategic locations across India, bolstering the country's terminal air defence capabilities. This project is expected to generate an average of 2,400 jobs per year over the next five years, both directly and indirectly, through partnerships with Indian aerospace, defence, and associated industries, including Micro, Small and Medium Enterprises (MSMEs).

Conclusion: A Strategic Win for L&T and India's Defence

L&T's recent contract wins with the Ministry of Defence represent a strategic victory for both the company and India's defence sector. These contracts not only bolster the nation's air defence capabilities but also contribute to L&T's growth, technological advancement, and job creation. This collaboration marks a significant step towards self-reliance in defence technology for India, with L&T playing a pivotal role in this endeavour.

Today, the shares of Larsen and Toubro Ltd surged 4.48 per cent to an intraday high of Rs 3,738.90 per share from its previous closing of Rs 3,481.60. The stock is up by 71.85 per cent since past 1 year low and gave multibagger returns of 146.77 per cent in the last 3 years. Investors must keep this Large-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.