Larsen & Toubro shares hit 52-week high: Check what analysts said for the infrastructure firm

NPL is a wholly-owned subsidiary of LTPDL, and the transaction is subject to requisite regulatory approvals.

Given NPL’s long-term power purchase agreement and stable operating performance, the divestment is a value-driven monetisation exercise. The transaction is aligned with L&T’s broader strategy to exit the development projects business.

The expected date for completion of the sale of NPL is on or before June 30, 2026. L&T said that it would receive ₹3,660.87 crore upon the sale of the entity.

Commenting on this, S N Subrahmanyan, Chairman & Managing Director of L&T, said, “The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long-term value for all our stakeholders—business partners, shareholders, and employees.”

Nabha Power Ltd (NPL) is a wholly-owned subsidiary of L&T Power Development Ltd. NPL owns and operates a 1,400 MW (2 X 700 MW) supercritical coal-fired thermal power plant at Rajpura in Patiala district, Punjab.

Commissioned in 2014, the power plant was set up under the Case II Competitive Bidding Guidelines of the Government of India. It operates under a 25-year Power Purchase Agreement.

Here’s what analysts said

Analysts at Macquarie Group said the sale is aligned with Larsen & Toubro’s long-term Lakshya 2026 strategy aimed at exiting non-core and asset-heavy businesses. They do not expect the transaction to have a material impact on the target price but noted that this deal, along with the planned divestment of the Hyderabad Metro project, should strengthen the company’s balance sheet and improve capital allocation.

The analysts further added that the company is increasingly looking to invest in new-age businesses.

Goldman Sachs said Larsen & Toubro’s decision to divest Nabha Power to Torrent Power for an enterprise value of around ₹6,900 crore is in line with its strategy to exit development projects. The analysts noted that the transaction simplifies the company’s structure, frees up capital, and is incrementally positive for its core return profile.

L&T share price

At 11:10 AM, shares of L&T were trading at ₹4,242.20 apiece on the National Stock Exchange, gaining 0.97%. The stock has rallied 1.1% to touch a one-year high during the intraday period.

Over a month’s time, the stock has jumped almost 10%, while it has surged 17% in the last six months. On a year-on-year basis, shares of Infosys have zoomed 32%.

The company has a total market capitalisation of ₹5.83 lakh crore, according to data on the NSE.