Tuesday saw a slight increase in Larsen & Toubro Ltd. (L&T) shares following the company’s announcement that it had secured a “large” order for its transport infrastructure (TI) division. L&T did not, however, reveal the precise amount of the order; typically, its “big” orders are worth between Rs 2,500 and Rs 5,000 crore.
L&T Construction’s transportation infrastructure division has been awarded a prestigious project contract to build the Palashbari to Sualkuchi Cable Stayed Bridge, which will span the Brahmaputra River in Assam. According to the filing, the Public Works Roads Department (PwRD), Assam, has awarded the project to build a bridge that will span 12.21 km and connect Palashbari and Sualkuchi.
Larsen & Toubro’s (L&T) shares increased 1.87 percent to Rs 3,403 on Tuesday after the announcement, bringing the company’s total valuation to Rs 4.7 lakh crore. The share closed Monday’s previous trading session at Rs 3340.50. The stock has risen roughly 60% from its 52-week lows. A 3.6 km long cable-stayed bridge section, a 5.61 km approach on the Palashbari side, and a 3.0 km approach on the Sualkuchi side, including wetland approach viaducts, are all part of the project. The extradosed cable stayed portion will have a maximum span of 165 meters. As stated in its filing, L&T anticipates finishing the project in 48 months.
Through the bridge, the two towns will be directly connected. Traditional Assamese clothing is woven in the village of Sualkuchi, one of the biggest weaving hubs in the world, using local resources like Muga, the golden silk that is only made there. Additionally, the bridge will provide direct access to Assam’s Lokpriya Gopinath Bordoloi International Airport,” the filing stated. For the third quarter that concluded on December 31, 2023, L&T reported a 15.5% YoY increase in net profit at ₹2,947.4 crore, but this figure fell short of street estimates. The revenue from operations of the engineering and construction conglomerate increased 18.8% YoY to Rs 55,127.8 crore in Q3FY24.
Order book position was robust in Q3, according to Centrum Broking, but margins stayed low. Following the Q3 results, it received an add rating on L&T with a target price of Rs 3,750. LKP Securities maintained its ‘buy’ rating on the counter, citing a robust order pipeline that indicates a promising future. The target price is Rs 3,865.
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