The shares of Larsen & Toubro Limited opened at Rs 2,097 and gained more than 2 per cent to reach a 52-week high of Rs 2,144 in the early hours of Wednesday. In the past month, the shares have gained 5 per cent.
The stocks of the construction giant gained after they announced that their construction arm has secured ‘mega’ orders for its minerals and metals (M&M) business. The value of the project is estimated to be above Rs 7,000 crore.
Earlier this week, the company secured an order from the National High-Speed Rail Corporation Limited (NHSRCL) to construct the Sabarmati Depot in the state of Gujarat for the Mumbai – Ahmedabad High-Speed Rail project through a consortium led by Sojitz Corporation, Japan. The project is estimated to be between Rs 2,500 crore to Rs 5,000 crore.
Larsen & Toubro is an Indian multinational business interested in engineering, construction, manufacturing, technology, information technology, and financial services. It is majorly engaged in EPC Projects, Hi-Tech Manufacturing, and Services operating in over 50 countries worldwide.
In Q2FY23, the company reported a total revenue of Rs 42,762.61 crore which is an increase of 23 per cent Year on Year from Rs 34,772.9 crore. In the period their net profit increased marginally to Rs 2,819.2 crore up from Rs 2,231.33 crore.
Global brokerage Jefferies remains bullish on the stock and has assigned a ‘Buy’ tag with a target price of Rs 2,455 per share which represents an upside of 15% from the current levels.
The brokerage firm highlighted that L&T’s current order book is ₹3.7 lakh crore, up 25 per cent year-on-year (YoY), and gives comfort on double-digit revenue growth in FY22-25E.
Written by Anoushka Roy
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