Larsen & Toubro (L&T) shares gained 2% on March 2 after the Cabinet approved signing a contract with the EPC major to acquire three cadet exercise ships.

At 9:28 am, the company’s shares were trading at Rs 2,135, up 1%, on the BSE.

Under the Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured) category, the Union Cabinet has approved signing a contract with engineering and construction conglomerate L&T to acquire three cadet training ships at an overall cost of Rs 3,108.09 crore, as per a news report.

On Wednesday, the defence ministry said the delivery of the ships is arranged to start in 2026. The ships will be indigenously designed, established, and constructed at the L&T shipyard in Kattupalli, Chennai. Broking house Jefferies has a ‘buy’ ranking on the L&T shares with a target price of Rs 2,660. It said the order flow outlook relics buoyant.

The foreign brokerage firm said the Centre and PSUs are pouring capital outlay, and states are predictable to pick up from the March quarter.

L&T is an engineering, earning, and construction major with interest. The company mainly works in infrastructure, heavy engineering, defence engineering, power, hydrocarbon, and facilities business segments. The infrastructure segment underwrites around 45% of consolidated income, followed by services which form about 30%.
Several analysts trust L&T relics as the best play on India’s capex story and are an extensively chosen capital goods pick.