L&T Shares Drop 7% in 5 Days Amid Kuwait Tender Uncertainty; JM Financial Cuts Estimates

• Larsen & Toubro (L&T) shares fell 7% over five trading sessions, with a 0.58% drop on January 14 to Rs 3865.50.
• JM Financial expressed concern over reports of Kuwait potentially canceling $8.7 billion oil project tenders, for which L&T had reportedly bid.
• Middle East Economic Digest (MEED) reported that bids for Kuwait's five major upstream contracts significantly exceeded budget, leading to discussions about tender cancellation and re-bidding.
• L&T clarified that the Kuwaiti projects were not part of its current order book and declined to comment on client decisions.
• JM Financial maintained a 'Buy' rating with a target price of Rs 4,500, but cut FY26-28 core order inflow estimates by 5-6% due to potential delays, leading to a 3% reduction in FY28E core EBITDA estimate.

Why It Matters: L&T shares declined due to uncertainty over Kuwaiti tenders, prompting JM Financial to lower future order inflow estimates.