Stories
L&T Secures Massive Dubai Contracts Worth Up To ₹7,500 Crore for Infrastructure Development
- •Larsen and Toubro (L&T) Ltd.'s transportation infrastructure business has secured 'large' and 'significant' contracts from Dubai's Roads and Transport Authority (RTA) for the Latifa Bint Hamdan Corridor.
- •The contracts, valued up to ₹7,500 crore, involve developing new roads, bridges, tunnels, and associated works to enhance connectivity between key Dubai corridors.
- •One contract focuses on connecting Al Khail Road with Latifa Bint Hamdan Street, improving access to development areas.
- •The second contract includes developing parts of Al Meydan Street, constructing a new interchange, and adding a cycling track to integrate with the existing network.
- •Both projects are slated for completion by the end of 2028, aiming to reduce travel time significantly and accommodate high traffic volumes.
Key Questions Answered
L&T's transportation infrastructure business vertical secured twin 'large' and 'significant' contracts from Dubai's Roads and Transport Authority for developing the Latifa Bint Hamdan Corridor. The first contract covers a new road connecting Al Khail Road with Latifa Bint Hamdan Street, featuring bridges and tunnels. The second contract includes parts of Al Meydan Street development, a new interchange, and a cycling track connecting to the Al Qudra to Jumeirah network.
Both projects forming the Latifa Bint Hamdan Corridor are scheduled to be completed by the end of 2028. Once finished, the extended 12 km corridor will connect key road networks in Dubai, accommodate around 16,000 vehicles per hour, and reduce travel time between Umm Al Sheif Street and Emirates Road from 33 minutes to 15 minutes.
Brokerage firm JPMorgan assigned L&T its highest-ever price target of ₹5,060 per share. JPMorgan noted that while West Asia conflicts pose an overhang, L&T's business is positioned for mid-teens growth with healthy returns on equity, and its valuation is attractive at less than 25 times its price-to-earnings ratio.
