🟢 At a Glance

• 📢 Business Vertical: Water & Effluent Treatment (WET), L&T Construction
• 📍 Region: Gujarat
• 💰 Order Value: Not disclosed (but inferred to be large or major)
• 🏗️ Project: EPC for a Bulk Water Supply Scheme
• 📦 Scope: Intake works, WTPs, pump houses, MS/DI pipelines, distribution systems

TL;DR: L&T is back doing what it does best — laying pipes, building treatment plants, and billing crores while the rest of us complain about leaky taps.

🏗️ Project Details

• Client: State Water Infrastructure Department
• Area Covered: 6 districts (rural & tribal areas)
• Purpose: Round-the-clock potable water supply
• Deadline: Aggressive. Because elections.

L&T will handle everything — from source intake to last-mile delivery using:

• SCADA automation
• GIS mapping
• IoT-integrated water quality monitoring

Yup, this is not your dadaji’s water project.

📊 How Big is This for L&T?

While the exact number isn’t disclosed, “Large Order” in L&T’s parlance = ₹2,500–₹5,000 crore. If it’s “Major”, it’s ₹5,000–₹10,000 crore.

Given the scope (across 6 districts with WTPs, pumping, automation), this looks like a Major order.

So yeah — maybe a ₹6,000–₹8,000 crore project.

🧠 EduInvesting Take

“This isn’t just infra. It’s L&T’s version of Swachh Bharat meets SaaS — only instead of subscriptions, they install pipelines.”

WET is underrated but super cash-flow friendly. L&T gets milestone-based payments, manages capex intelligently, and gets brownie points from state governments (which also helps in getting roads, metros, etc).

While investors love talking about defence and green hydrogen, it’s water infra that keeps L&T’s annuity engine humming.

🧾 Financial Context

This project alone could contribute ~10% to next year’s WET revenue.

💧 Why This Matters for L&T

• Margin-friendly business (unlike heavy EPC or rail)
• ESG-positive, election-sensitive
• High IRR, lower receivable risk (state-backed)
• Massive pipeline — 25+ WET bids pending across India

🎯 FV Range for L&T (Infra Story Forward)

• TTM EPS: ₹98
• Infra P/E: 25–28× (bluechip, cash-flow positive)

🎯 Fair Value Range: ₹2,450 – ₹2,750

🚩 Risks

• Execution delays (monsoons, bureaucracy)
• Payment lags if state finances wobble
• Lumpy revenue recognition

But overall? A solid, unsexy, quietly powerful business line.

📋 Edu Scorecard