L&T Shares Slide to One-Month Low Amid Middle East Exposure Concerns
Shares of Larsen & Toubro (L&T) fell sharply on Wednesday, hitting a one-month low after investors grew concerned that the escalating conflict in the Middle East could disrupt the company’s projects across the region. The stock declined more than 7%, leading losses on the benchmark Nifty 50 index, as markets reacted to rising geopolitical risks and potential operational challenges for companies with significant overseas exposure.
L&T has substantial business interests in the Middle East through its hydrocarbon, infrastructure and energy engineering segments, with the region accounting for a major portion of its international order book. Analysts warned that the ongoing conflict could affect project execution due to possible site disruptions, supply-chain delays and higher freight costs. The crisis has also unsettled global markets and threatened oil shipments through the Strait of Hormuz, a critical route for global energy trade.
Brokerages noted that the Middle East contributes roughly one-third of L&T’s inflows, backlog and revenue, meaning prolonged instability could impact earnings growth. Some estimates suggest a temporary blockade of key shipping routes could slightly reduce earnings per share. Despite near-term risks, analysts remain broadly optimistic about the company’s long-term outlook, with most maintaining a “buy” rating and viewing the recent decline as a potential investment opportunity.
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