 "L&T, BEML, Tata Power rise on Rs 2,580 crore deal with Defence Ministry")
Shares of Larsen & Toubro (L&T), Tata Power, and Bharat Earth Movers (BEML), gained on the BSE on Tuesday, a day after the Defence Ministry signed contracts with these companies worth Rs 2,580 crore to procure Pinaka rocket launchers for six Army regiments.
At 09:32 AM, L&T was trading over 1.7 per cent higher at Rs 961.65. It hit a high of Rs 965.95 in the opening deals. Tata Power was trading over 2 per cent higher at Rs 60.05 while BEML hit a high of Rs 699.95, up 4.5 per cent against Monday's close of Rs 669.2.
In comparison, the benchmark S&P BSE Sensex was trading nearly a per cent higher at 38,974.68 levels.
The Acquisition Wing, Ministry of Defence signed contracts with Bharat Earth Movers Ltd (BEML), Tata Power Company Ltd (TPCL), and Larsen & Toubro (L & T) on August 31, a statement from the ministry said.
The Acquisition Wing, Ministry of Defence signed contracts with Bharat Earth Movers Ltd (BEML), Tata Power Company Ltd (TPCL), and Larsen & Toubro (L & T) on August 31, a statement from the ministry said.
The six Pinaka Regiments comprise 114 Launchers with automated gun aiming and positioning system (AGAPS) and 45 command posts to be procured from M/s TPCL and M/s L & T, and 330 vehicles to be procured from M/s BEML. CLICK HERE TO READ FULL REPORT
L&T shares were also in focus after the engineering conglomerate on Monday announced completion of the sale of its electrical and automation (E&A) business to Schneider Electric. The deal was first announced in May 2018. Valued at Rs 14,000 crore, it is one of L&T’s biggest divestment so far in value terms. READ MORE
"While we acknowledge current challenges in infra funding, sub-optimal returns led by cyclical challenges in E&C, Hyderabad Metro, NBFC, etc, L&Ts medium-term focus on making the business asset-light with high cash flow generation potential could drive a better
re-rating if executed well," analysts at Edelweiss Securities had said in a note issued on August 20.
Improving macros and domestic capital expenditure (capex) would be complementary. The extent of re-rating is also contingent on initiatives to reward stakeholders and improving the return profile, the brokerage added.
The brokerage has maintained a 'BUY/SO' rating on the stock with the target price of Rs 1,280.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%