Shares of Larsen & Toubro were up 2.5 per cent at Rs 1,347 on the BSE in the intra-day trade on Thursday, having rallied over 50 per cent in the past three months, on the back of strong order flows.
The stock of construction & engineering major was trading close to its 52-week high of Rs 1,384, touched on February 1, 2020. In the past three months, L&T has outperformed the market by surging 51 per cent, as against a 21-per cent rise in the S&P BSE Sensex.
L&T on Thursday announced that its arm L&T Hydrocarbon Engineering, a wholly-owned subsidiary of the company, has secured a large contract from Oil & Natural Gas Corporation (ONGC) for their new living quarter (LQ) and revamp at 'NQ Complex' (NLRNC-RT2) project. READ HERE
Including order from ONGC, L&T's various business divisions have secured one mega, three large and four significant orders, that are together worth over Rs 25,000 crore in the past one month, according to stock exchanges announcements. The company did not disclose the size of the orders but stated that mega orders are the ones over Rs 7,000 crore, large orders are in the range of Rs 2,500 crore-Rs 5,000 crore, while significant orders are in the range of Rs 1,000 crore-Rs 2,500 crore.
According to a Business Standard report, L&T construction arm is also the lowest bidder for Uttarakhand railway project worth of Rs 3,338 crore from Rail Vikas Nigam (RVNL). The company’ engineering business also snapped up orders worth Rs 10,000 crore from Hindustan Petroleum joint venture, the report suggests. CLICK HERE TO READ FULL REPORT
L&T's order book stood at Rs 3 trillion as of September 2020 (Q2), comprising 82 per cent of the contracts from PSUs and government. Management has seen strong enquiry pipeline from Infra, Hydrocarbon and Heavy engineering segments both from domestic and international markets. "Going ahead, management expects healthy ordering from key sectors like Water, Power T&D, Metro/RRTS, Railways, Roads and Expressways comprising strong pipeline of around Rs 6 trillion," analysts at Prabhudas Lilladher said in a Q2 result update.