L&T shares snapped a three-day winning streak, even as another “mega order” for the bullet train project was secured by the nation’s largest construction and engineering company. L&T Construction’s transport infrastructure business has secured another mega-contract for the construction of 87,569 km of the Mumbai-Ahmedabad High-Speed Rail project by the National High-Speed Rail Corp.
Construction of viaducts, one station, major river bridges, maintenance depots and other auxiliary works comprise the scope of this ‘C6 package.’ The order represents 17.2 percent, the company said of the total length. The bullet train project is the first sure sign that our economy is kicking off again and another chance to drive Make In India and Atmanirbhar Bharat Abhiyan,”The bullet train project is the first sure sign of our economy kick-starting again and another opportunity to drive the Make In India and Atmanirbhar Bharat Abhiyan,”
SN Subrahmanyan, managing director and chief executive officer at L&T, was quoted as saying in the filing, ‘The bullet train project is the first sure sign of our economy kick-starting again and another chance to drive the Make In India and Atmanirbhar Bharat Abhiyan.’ A C4 package of the same project called the biggest engineering, procurement, and construction contract awarded in India to date, had earlier been won by the company.
In a note, Jefferies India analyst Lavina Quadros said, ‘Domestic order flow [for L&T] is 97 percent and augurs well for future margin outlook.’ “At the end of Q2, the order flow pipeline increased by 15 percent, after falling by 26 percent year-on-year at the end of Q1. This also indicates a favourable outlook for Q4,” Jefferies said as it maintained a stock “buy” rating with a price target of Rs 1,270 each.
Of the 41 L&T tracking analysts, 38 have a ‘buy’ rating, two suggest a ‘hold’ and one has a ‘sell’ suggestion. The 12-month target price of the Bloomberg consensus implies an upside of 3%. As investors booked profits at higher levels, L&T shares ended 1.2 percent lower at Rs 1,134.25, in-line with the sell-off in the benchmark indices.
About the company : L&T
Larsen & Toubro Limited, commonly referred to as L&T, is an Indian conglomerate of technology, engineering, construction, manufacturing, and financial services, with global operations, headquartered in Mumbai, Maharashtra, India. Two Danish engineers took refuge in India and founded it. The company has business interests in basic and heavy engineering, construction, real estate, capital manufacturing,
As of 31 March 2019, 118 branches, 6 partners, 25 joint ventures and 35 joint operations companies belong to the L&T Group.