Larsen & Toubro (L&T) shares surged 2% to Rs 2,108 on the BSE in intraday trade Monday after the firm announced major orders for its water and wastewater treatment division.
According to a press release from L&T, the company received an order from Tumakuru Industrial Township Limited (TITL) as part of the Chennai Bengaluru Industrial Corridor (CBIC), as well as repeat orders from the Tamil Nadu Water Supply and Drainage Board (TWAD Board), which is funded by the Asian Development Bank (ADB).
The actual amount of the orders were not disclosed by the corporation. According to L&T, the project is worth between Rs 1,000 and 2,500 crores.
The TITL order is to build, operate, and maintain the infrastructure at the Tumakuru Node in Karnataka on an EPC basis.
This project is a component of the Union government’s flagship program, ‘Development of Industrial Corridors,’ which is overseen by the National Industrial Corridor Development and Implementation Trust (NICDIT), the apex body in charge of overseeing the integrated development of all industrial corridors across the country.
TWAD Board has directed the provision of ‘Underground Sewerage Scheme (UGSS)’ works in Coimbatore.
Meanwhile, L&T has lately outperformed the market, rising 2% in the last month compared to a 3% decrease in the S&P BSE Sensex.
The capital goods giant’s stock price has increased by 13% and 40% in the last three and six months, respectively. Despite today’s improvements, L&T has been down 4% in the previous week, compared to a 2% drop in the benchmark index. On December 16, the stock reached a record high of Rs 2,211.
Prabhudas Lilladher analysts believe that L&T is well-positioned to benefit from overall diversified tender prospects, with better order conversion in the domestic market, significant traction in capex from oil exporting countries, primarily in the hydrocarbon segment, and an expected increase in private capex.
Larsen & Toubro (L&T) is a multinational engineering and construction company based in India. The company was founded in 1938 by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro. L&T is involved in a wide range of engineering and construction projects, including infrastructure, construction, heavy engineering, power, and defense. The company has a global presence, with operations in more than 30 countries around the world. L&T is known for its strong focus on research and development and has been involved in numerous innovative projects.
