Larsen & Toubro shares clock 52-week high; what is keeping investors hooked?

L&T share price NSE, L&T new order news: Larsen & Toubro (L&T) shares clocked a 52-week high on Thursday, on track to close higher following four back-to-back sessions of losses, after the conglomerate said the power transmission and distribution unit of its construction arm, L&T Construction, secured key orders to the tune of Rs 2,500-5,000 crore in the Middle East. L&T shares rose half a per cent to clock a fresh 52-week high of Rs 3,559.95, surpassing an earlier peak of Rs 3,549 registered the previous day.  

Larsen & Toubro said L&T Construction won large orders for its power transmission and distribution unit. The group classifies orders to the tune of Rs 2,500-5,000 crore as large.

“In the United Arab Emirates, the business has received an order for Engineering, Supply, Construction, Installation, Testing and Commissioning a 400/132kV Substation. The scope also includes associated Transformer, Reactor and Substation Control & Monitoring Systems (SCMS). In Kuwait, the business has won an order to establish 400kV Overhead Transmission Lines along with associated 400kV Underground Cable interconnections,” L&T said in a regulatory filing during market hours on Thursday.

“This transmission segment of more than 100KM route length will help to evacuate and generate power. Additional orders have been won in ongoing substation orders in the region,” it said.

The stock ended at Rs 3,523 apiece, down by 0.59 per cent on NSE.

In a separate development, L&T Construction was chosen as the turnkey engineering, procurement and construction (EPC) contractor to establish various systems related to renewable energy generation and utilities for the Amaala project in the Red Sea region, Saudi Arabia. 

L&T Q2 results 

Larsen & Toubro reported a decent set of numbers for the second quarter of the current financial year backed by strong order growth across businesses. Its net profit increased 44.6 per cent to Rs 3,223 crore while revenue grew 19.3 per cent to Rs 51,024 crore for the quarter ended September, in line with analysts’ estimates, and margin stood at 11.04 per cent.  

According to Zee Business research, the construction giant’s quarterly net profit was estimated at Rs 3,108 crore, revenue at Rs 51,074 crore and margin at 11 per cent.  

What does Larsen & Toubro do? 

Larsen & Toubro is a $23 billion multinational engaged in EPC projects, hi-tech manufacturing, and services. The company operates in more than 50 countries worldwide. 

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