L&T Shares Drop 7% in 5 Days Amid Kuwait Tender Uncertainty; JM Financial Cuts Estimates
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Moneycontrol•14-01-2026, 16:11
L&T Shares Drop 7% in 5 Days Amid Kuwait Tender Uncertainty; JM Financial Cuts Estimates
- •Larsen & Toubro (L&T) shares fell 7% over five trading sessions, with a 0.58% drop on January 14 to Rs 3865.50.
- •JM Financial expressed concern over reports of Kuwait potentially canceling $8.7 billion oil project tenders, for which L&T had reportedly bid.
- •Middle East Economic Digest (MEED) reported that bids for Kuwait's five major upstream contracts significantly exceeded budget, leading to discussions about tender cancellation and re-bidding.
- •L&T clarified that the Kuwaiti projects were not part of its current order book and declined to comment on client decisions.
- •JM Financial maintained a 'Buy' rating with a target price of Rs 4,500, but cut FY26-28 core order inflow estimates by 5-6% due to potential delays, leading to a 3% reduction in FY28E core EBITDA estimate.
Why It Matters: L&T shares declined due to uncertainty over Kuwaiti tenders, prompting JM Financial to lower future order inflow estimates.
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