[Investors Please Listen] L&T bags Rs4.1 bn orders in Nuclear Power space, At CMP the stock is trading at rich valuations of 27.2X FY10E and 22.6X FY11E consolidated earnings of Rs58.9 and Rs70.8 per share respectively. We have a HOLD rating on the stock.

L&T has bagged orders worth Rs4,050 mn in the nuclear power space:

n    It has bagged a repeat order from Nuclear Power Corporation of India for four steam generators. The order involves design, manufacture and supply of four steam generators for 700 MWe pressurized heavy water reactors for NPCIL's Rajasthan Atomic Power Plant (7 & 8). L&T had previously bagged an order for supply of 4 steam generators to NPCIL's Kakrapar Atomic Power Project (3 & 4) worth Rs3,450 mn.

n    L&T has also bagged a technology development order from Department of Atomic Energy (DAE, MRPU) for welded grid plate as per a new IGCAR design.

With the above orders, L&T has bagged orders worth Rs163 bn YTD (H1FY09 order intake - Rs247 bn) – equivalent to 27.5% of our FY10E order inflow estimates. We reiterate that achieving management order inflow guidance of 25-30% in FY10E will be herculean task and expect order inflow growth at a lower 15%. L&T's total order book stands at Rs784 bn. At CMP the stock is trading at rich valuations of 27.2X FY10E and 22.6X FY11E consolidated earnings of Rs58.9 and Rs70.8 per share respectively. We have a HOLD rating on the stock.

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