L&T extend gains, hit seven month high

The company has restructured its IT and L&T Integrated Engineering Services businesses with a view to accelerate growth in the technology space

Larsen and Toubro (L&T) has surged 5% to Rs 1,488, extending 4% gain in past two trading sessions on the Bombay Stock Exchange.

L&T today announced that the company has restructured its IT and L&T Integrated Engineering Services businesses with a view to accelerate growth in the technology space.

Meanwhile, the company is set to expand the share of ship-building and defense businesses in its order book over the next couple of years, according to media reports.

“L&T’s investments in manufacturing (shipyard, nuclear forgings JV, power, Oman fabrication yard/heavy engineering) and concerted efforts at increasing its geographic scope should enable the company to expand its presence in segments such as defence, nuclear, hydrocarbons and potential defence submarine orders for its shipyard,” analyst at Barclays Equity Research said in latest report.

 

L&T’s consolidated profit to outpace standalone by over 400bps p.a. until financial year 2020. L&T Finance, shipbuilding and power development are the key drivers of profitability, added report.

The stock opened at Rs 1,440 and hit seven month high at Rs 1,489 on the BSE. The trading volumes on the counter was almost double with a combined 2.21 million shares have changed hands so far on both the exchanges.