Multibagger stock: Infrastructure Giant Secures USD 2.77 Billion Contract for Renewable Energy Infrastructure!

In the past year, the stock of this infrastructure giant has risen by over 35 percent. Larsen & Toubro (L&T) is a global conglomerate engaged in engineering, construction, manufacturing, and financial services. On June 2, 2023, the company announced through an exchange filing that its power transmission and distribution business has secured a contract worth USD 2.77 billion.

Under the Power Elements package, the company will be responsible for the engineering, procurement, and construction of a 2.2 GWac PV Solar Plant, a 1.65 GW Wind Generation Balance Plant, and a 400 MWh Battery Energy Storage System. Additionally, they will construct three 380 kV Switching Stations, 306 km of 380 kV Overhead lines, and Underground Cables required for the Kingdom’s Grid network.

L&T has achieved significant milestones in the power elements and grid packages for the world’s largest green hydrogen plant being constructed by NEOM Green Hydrogen Company in the Oxagon region of Saudi Arabia’s NEOM. NEOM Green Hydrogen Company (NGHC) is an equal joint venture between ACWA Power, Air Products, and NEOM.

NEOM Green Hydrogen Company is establishing a mega plant with a total investment of USD 8.4 billion to produce green hydrogen at scale for global export in the form of green ammonia. The project has achieved full financial close with the support of 23 local, regional, and international banking and financial institutions, and construction is progressing.

Over the past three years, the stock has delivered multibagger returns of more than 170 percent. Investors are advised to closely monitor this stock.