Larsen & Toubro Ltd (L&T) stock started its trading session today at Rs 2,156.50 and closed at a price of Rs 2,165.05. The scrip showed a movement of around 0.8 percent as compared to the previous closing price of Rs 2,147.45.
Keeping a purview of three years, the stock has been able to provide multibagger returns of around 160 percent. It means that if someone would have invested Rs 1,00,000 in the stock then it would have converted to Rs 2,60,000 within a period of three years.
In a recent filing with the exchange today, the company announced about the Power Transmission & Distribution (PT&D) arm securing multiple domestic EPC orders worth between Rs 1,000 to 2,500 crores.
Apart from the above order, the company, during this week, secured two orders from the Vedanta Group worth between Rs 2,500 to 5,000 crores pertaining to a setup of a 5 LTPA Fertiliser Plant for M/s. Hindustan Zinc Limited (a Vedanta Group Subsidiary) and Expanding the capacity of the Aluminum Smelter Complex at BALCO Korba, Chhattisgarh.
Larsen & Toubro Ltd (L&T) is a conglomerate that enters into contracts pertaining to the construction of various facilities, developing solutions for offshore and onshore hydrocarbon projects, serving power plants, etc.
The company has several operating segments such as the Infrastructure segment, Power segment, Defence engineering segment, and others. It can also supply customized solutions or standardized components for reproduction with its significant service network boosting the aftermarket sales.
Digging into the financials, the revenues and net profits of the company have increased on a QoQ basis. Revenues witnessed a shift from Rs 42,763 crores in Q2 to Rs 46,390 crores in Q3. In congruence with the pattern shown above, the net profit figures moved up from Rs 2,819 crores in Q2 to Rs 3,066 crores in Q3.
The profitability ratios such as the return on equity (ROE) and return on capital employed (ROCE) increased on a YoY basis. ROE took a shift from 6.58 percent in FY20-21 to 13.07 percent in FY21-22. Likewise, ROCE moved from 9.97 percent in FY20-21 to 11.61 percent in FY21-22.
The debt to equity ratio of the company consistently reduced over the past three financial years with the most recent shift being from 1.76 in FY20-21 to 1.5 in FY21-22.
Written by Amit Madnani
