Larsen and Toubro is a multinational conglomerate primarily engaged in providing engineering, procurement, and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services in domestic and international markets. The company has made a significant announcement regarding orders received by the company.
As detailed in the official report, the Power Transmission and Distribution (PT&D) business of Larsen and Toubro has secured multiple orders in India and the Middle East.
The business has obtained an order to establish a 75MW Floating Solar PV plant on the Panchet Dam. This plant is part of the Ultra Mega Renewable Energy Power Park being developed on Damodar Valley Corporation reservoirs in Jharkhand and West Bengal. In Saudi Arabia, an order has been received for the turnkey construction of a 380kV Substation. The business has also won orders for substations and voltage conversion from hydrocarbon companies in Kuwait and Saudi Arabia. In an ongoing 220kV Power Supply Project in the UAE, an additional order has been secured.
The following are the orders secured by the company since January of the fresh year 2024.
| Date | Type | Order Size | Client |
| January 09, 2024 | Significant | Rs 1000 – Rs 2000 | HITES Limited |
| January 16, 2024 | Mega | Rs 10000 – Rs 15000 | Authorised Japanese Agency |
| January 17, 2024 | Significant | Rs 1000 – Rs 2000 | Maharashtra Government |
| January 23, 2024 | Significant | Rs 1000 – Rs 2000 | Its Oil and Gas Customer |
| January 30, 2024 | Mega | Rs 10000 – Rs 15000 | Largest Renewable Company in UAE |
| February 05, 2024 | Large | Rs 2500 – Rs 5000 | Indian Oil Adani Ventures |
| February 06, 2024 | Large | Rs 2500 – Rs 5000 | Public Works Road Department |
Today, the company’s shares commenced trading at Rs 3458.75 per share, higher compared to the preceding day’s closing figure of Rs 3423.5 per share. Finally, the company’s shares concluded the day at Rs 3403.25 per share on the BSE almost flat compared to the previous day’s closing price.
The market capitalisation of the company stands at Rs 4,67,793 crore. Additionally, the stock has delivered an impressive return of 57% in the past year and a 124% return in the past three years.
In terms of ownership, the FIIs and DIIs hold 25.50% and 37.34% respectively, while the remaining 36.93% and 0.23% are held by public investors and the Government, as per the most recent update.
During the December quarter, the company reported revenues of Rs 55,128 crore, reflecting a YoY growth of 19% compared to Rs 46,390 crore in the same quarter last year. The company achieved an operating profit of Rs 7,199 crore for the quarter, resulting in a 13% operating profit margin. This contrasts with the corresponding quarter of the previous year when the operating profit was Rs 6,653 crore, with a margin of 14%.
Furthermore, the company reported a net profit of Rs 3,593 crore during the quarter, representing a significant increase from the net profit of Rs 3,058 crore in the same period last year. The company’s net profit grew by 17.5% year-on-year during the quarter.
The company’s ROCE and ROE are 11.6% and 11.7% respectively and the stock is trading at a PE of 36.9 times in the market.
Investors should keep this stock on their radar.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Feb 7, 2024, 4:17 PM IST
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