Shares of Indian infrastructure major Larsen & Toubro dropped more than ​7% to ⁠a one-month low on Wednesday, over worries that the escalating Middle ‌East war could disrupt the company's projects in the region.

It led losses on ​the benchmark Nifty 50, which was down around 2%. L&T has exposure to the Middle ​East through ​its hydrocarbon, infrastructure and energy engineering businesses, with the region contributing a large share of its international order book.

The construction and ⁠engineering firm, which fell about 5% on Monday, was down as much as 7.5% at 3,760 rupees on Wednesday after trading resumed following a local market holiday on Tuesday.

"The Gulf conflict could impact L&T ​execution in ‌terms of physical damage ⁠to its ⁠ongoing infrastructure and hydrocarbon sites, including cancellation of projects and further supply chain cost ​due to the impact of geopolitical and ‌freight delays," Macquarie said in a note. The conflict, ⁠which began on February 28, has rattled global markets and hit oil production and shipping through the Strait of Hormuz between Iran and Oman, which carries around one-fifth of the world's oil. "Middle East accounts for 33–35% of L&T's inflows, backlog and revenue, and potential blockade of the Strait of Hormuz for March could shave 1.8% off the consolidated earnings per share," CLSA said.

Analysts at Axis ‌Capital warned that project execution could be impacted if the ⁠crisis were prolonged.

However, some analysts also said ​that the pullback presents a buying opportunity as long-term prospects remain intact.

L&T is rated "buy" on average by 30 analysts, with a median price ​target of ‌4,800 rupees, according to LSEG data.

(Reporting by Brijesh ⁠Patel, writing by Chandini Monnappa ​in Bengaluru; Editing by Mrigank Dhaniwala and Harikrishnan Nair)