Larsen & Toubro Ltd, (L&T) remained in focus on Thursday after the company received an order worth Rs 2,585 crore from the Ministry of Defence for the supply of 41 sets of modular bridges for the Corps of Engineers of the Indian Army.
“Each set of the modular bridges shall consist of seven carrier vehicles based on 8×8 Heavy Mobility Vehicles [HMVs] and two launcher vehicles based on 10×10 HMVs. Each set shall be capable of mechanically launching a single span fully decked 46-metre assault bridge,” the statement said.
The shares of the company were trading marginally higher till the afternoon at Rs 2,141 levels. In the past six months, the stock has increased by approximately 16 percent. It is currently trading near its 52-week high of Rs 2,297.65, reached in January 2023.
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 Q3FY23, the company reported a total revenue of Rs 47144.75 Crore compared to Rs 40134.31 Crore in the same period the year earlier, a 17 percent growth YoY. From the previous quarter, their revenue grew by 8 percent from Rs 43501.14 Crore.
Their net profit in the period was at Rs 3065.93 Crore up 23 percent from Rs 2,496.86 Crore in Q3FY22. In the September quarter, their profits were at Rs 2819.20 Crore.
The construction giant has a market capitalization of Rs 3,01,965 Crore and a dividend yield of 1.02%. In addition to that, the stock is undervalued compared to its peers as its TTM PE is at 29.88 while the sector average is 38.02.
Global brokerage firm Jefferies is bullish on the stock and has a ‘Buy’ rating with a target price of Rs 2,650 per share representing an upside of 24% from the current levels.
Written by Anoushka Roy
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