 "Larsen & Toubro shares advance 6%, hit over seven-month high")
Shares of Larsen & Toubro (L&T) rose 6 per cent to hit an over seven-month high of Rs 1,025 on the BSE on Tuesday. The construction & engineering major's stock was trading at its highest level since March 16, 2020.
In the past four trading days, the stock has risen 9 per cent after L&T said the ordering activity in Infra relatively strong despite pandemic concerns, power generation and hydrocarbon muted. The company saw sequential improvement in ordering momentum in infrastructure segment in September quarter (Q2FY21); encouraging prospect pipeline. The execution picks up in Q2 on the back of higher work force availability and supply chain normalization, it said.
L&T has emerged the lowest bidder for the C6 package of the National High-Speed Rail Corporation’s (NHSRCL) bullet train project, at Rs 7,289 crore. This is the second contract for the company in the mega project. Last month, the company won one of the largest infrastructure tenders the country for design and construction of civil works for 47 per cent of the total alignment of the Mumbai-Ahmedabad High-Speed Rail corridor.
Despite near-term challenges, analysts at HDFC Securities reiterate 'BUY' on L&T, given its strong order book (Rs 2.99 trillion, 3x FY20 core EPC revenue), healthy balance sheet and robust services business.
Analysts at Prabhudas Lilladher believes near-term macro risks (mainly private capex) may appear challenging, but current valuations are adequately pricing-in such risks and believe that L&T is well-placed to emerge stronger given its financial, technical and managerial capability to sustain and gain market share. The company continues to focus on its strategic plan of asset monetization and improving return ratios, the brokerage firm said.
In the past four trading days, the stock has risen 9 per cent after L&T said the ordering activity in Infra relatively strong despite pandemic concerns, power generation and hydrocarbon muted. The company saw sequential improvement in ordering momentum in infrastructure segment in September quarter (Q2FY21); encouraging prospect pipeline. The execution picks up in Q2 on the back of higher work force availability and supply chain normalization, it said.
L&T has emerged the lowest bidder for the C6 package of the National High-Speed Rail Corporation’s (NHSRCL) bullet train project, at Rs 7,289 crore. This is the second contract for the company in the mega project. Last month, the company won one of the largest infrastructure tenders the country for design and construction of civil works for 47 per cent of the total alignment of the Mumbai-Ahmedabad High-Speed Rail corridor.
Despite near-term challenges, analysts at HDFC Securities reiterate 'BUY' on L&T, given its strong order book (Rs 2.99 trillion, 3x FY20 core EPC revenue), healthy balance sheet and robust services business.
Analysts at Prabhudas Lilladher believes near-term macro risks (mainly private capex) may appear challenging, but current valuations are adequately pricing-in such risks and believe that L&T is well-placed to emerge stronger given its financial, technical and managerial capability to sustain and gain market share. The company continues to focus on its strategic plan of asset monetization and improving return ratios, the brokerage firm said.
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%