In an otherwise subdued market sentiment, Larsen & Toubro Ltd grabbed the spotlight thanks to several positive developments. Not only did the company report substantial growth in its revenue and net profits, but it also announced its approval for the incorporation of a wholly-owned subsidiary dedicated to fabless semiconductor chip design and product ownership, with an investment of up to Rs 830 crore.
The company also revealed that its hydrocarbon business (L&T Energy Hydrocarbon) has received a letter of intent for another significant ultra-mega onshore project from a prestigious Middle Eastern client. This follows the recent award of an ultra-mega project for a gas compression plant. According to the project classification outlined in the press release, an ‘ultra-mega’ project is defined as one valued at more than Rs 15,000 crore.
The scope of work includes the engineering, procurement, and construction for a Gas Processing Plant. This facility will comprise multiple units that will be integrated with the existing Gas Processing Plants. The company received orders totaling Rs 89,153 crore at the group level during the quarter ending on September 30, 2023, marking a strong year-on-year growth of 72%. In addition, the company announced that, as of September 30, 2023, the consolidated order book stands at Rs 4,50,734 crore, with international orders accounting for 35% of the total.
Larsen and Toubro Ltd is a multinational conglomerate that is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as infrastructure, hydrocarbon, power, defence, information technology and financial services in the domestic and international markets.
Shares garnered buying interest at the beginning of the trading session and reached an intraday peak of Rs 2,983 per share on the BSE, delivering a remarkable 25% return over the past six months.
Keep a close eye on this stock for the upcoming trading sessions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
Very interesting! Glade to hear that