Stocks to buy: Larsen and Toubro poised for upward move, analyst says; prices up 1 pct after fresh bullet train order

Larsen and Toubro stocks were trading in the green on Thursday and were up almost 1 per cent on Thursday, trading at Rs 1,160 on Nifty at 11:20 am.  On Wednesday, Zee Business indicated positive triggers for this stock and the biggest trigger is the regular big order flows. The company has grabbed a big order for the High-Speed Rail Corridor.  

The company already has an order worth Rs 25,000 cr developing a section of the Bullet train corridor. Another order that they have got is for a chunk which is around 17.2 per cent of the total length. This is regarding development of a section between Vadodara and Ahmedabad. 

Watch Zee Business Tweet Video Below:

#BreakingNews | L&T को हाई स्पीड रेल कॉरिडोर के लिए ₹7,000 करोड़ से ज्यादा का मिला ऑर्डर #BulletTrain @AnilSinghvi_ pic.twitter.com/WyDjoAMzoG

— Zee Business (@ZeeBusiness) November 19, 2020

Though L&T does not give full details of the orders, the company is calling it a mega order, which means it is worth over Rs 7,000 cr. The real figures would be revealed at a later stage.  

This has generated a lot of action in the stock. 

This stock attained a 52-week high of Rs 1,417 on 21 November 2019while a 52-week low of Rs 661 on 25 March 2020. 

Stock to Buy: Expert Tips 

This stock has been a laggard and has not moved in tandem with Nifty, Technical Analyst Nilesh Jain of Anand Rathi said. This stock is now ready for an upward move he added. It has faced a similar fate just like other big counters like Bharti Airtel, ITC and SBI. 

The charts show a somewhat similar pattern with SBI which is indicating that a strong rally could be expected once the stock achieves a breakout, Jain said. 

Jain said that he expected the stock to reach around Rs 1,400, almost near its 52-week high. The stock has failed to breach the levels of Rs 1800, over quite a few years.  

There is already a bottom around Rs 800 and it is unlikely that the stock would hit below this level. The risk-reward ratio is attractive and it is advised that the fresh position should be made on dips. 

See Zee Business Live TV Streaming Below:

While, the contract regarding bullet train is a welcome one, Jain said that the company has been bagging large orders and has a huge order book. This augurs well for the stock. The target rice will be achieved from here, irrespective of the fact that it gets fresh orders or not.