Hopes of improved profitability driving up L&T's stock

Shift from owning assets to functioning as an EPC, annuity contractor supports its long-term plans

The Larsen and Toubro (L&T) stock has been a surprise winner, gaining 22 per cent year-to-date, much higher than the Sensex’s 12.5 per cent. This is despite a lacklustre December quarter showing. But, the Street is willing to put all the disappointment behind. “L&T today has reached a certain scale that it would be unfair to see the company expand its order book by 12-15 per cent over a year hereon, given its base effect and the operating conditions which haven’t turned totally favourable yet,” a fund manager invested in the stock said.

Therefore, he said that what analysts would