The shares of this leading EPC contract provider are in focus after its water division bagged a significant large contract worth upto Rs 2,500 crores. In this article, we will discuss more on the details of the order.
With a market capitalization of Rs 4,99,378 crores, the shares of Larsen & Toubro Ltd are currently trading at Rs 3,631 per share, down by 8.38 percent from its 52-week high of Rs 3,963.50 per share. Over the past five years, the stock has delivered a return of 279 percent.
Larsen & Toubro’s Water & Effluent Treatment (WET) business has announced significant EPC projects from the Public Health Engineering Department of Rajasthan under two major projects.
The first part of the Rajasthan Rural Water Supply and Fluorosis Mitigation Project – Phase II, Package-1, consists of providing and installing 5,251 km of transmission and distribution pipelines, 38 ground-level reservoirs (40 ML capacity), 132 overhead service reservoirs (25 ML capacity) and 20 pump houses. It is expected to serve 285 villages and the towns of Surajgarh and Udaipurwati in Jhunjhunu district.
The second order is for strengthening the water supply system in the Kekri-Sarwar sector of Ajmer by the installation of 43 km of pipelines. Both projects also include associated electromechanical works, instrumentation, automation, SCADA systems, a 1-year defect liability period, and 10 years of operations & maintenance.
Financial Highlights
The company reported a revenue of Rs 2,55,734 crores in FY25, up by 15.65 percent from its FY24 revenue of Rs 2,21,113 crores. Coming to its profitability, it reported a net profit growth of 13.67 percent to Rs 17,673 crores in FY25 from Rs 15,547 crores in FY24.
The stock has delivered an ROE and ROCE of 16.55 percent and 14.49 percent respectively, and is currently trading at a P/E of 32.81x as compared to its industry average of 22.85x.
Larsen & Toubro Limited (L&T) was founded in 1938 and is headquartered in Mumbai, India. It is a global engineering, construction, and manufacturing company. Its key segments include infrastructure projects, energy projects, and hi-tech manufacturing. L&T also provides IT and technology services, financial services, and infrastructure development, along with manufacturing industrial equipment.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
