L&T secures 'significant' offshore order from ONGC; stock down

Larsen & Toubro Ltd (L&T) on Monday said its L&T Energy Hydrocarbon (LTEH) vertical secured a 'significant' order from the Oil & Natural Gas Corporation (ONGC) for the eighth phase of Pipeline Replacement Project (PRPVIII Group B) off India's west coast. In terms of valuations, L&T's project classification of a significant order is between Rs 1,000 crore and Rs 2,500 crore.

The order involves engineering, procurement, construction, installation & commissioning (EPCIC) of 129 km subsea pipelines and associated modification works across India's west coast offshore fields of the ONGC, L&T stated in an exchange filing.

Subramanian Sarma, Whole-time Director & President – Energy at L&T, said, "This order reflects ONGC's continued confidence in L&T, and this emanates from our track record of successfully delivering complex offshore projects. This order further demonstrates L&T's unwavering commitment to India’s energy requirement."

"LTEH offers integrated design-to-build solutions across the hydrocarbon sector to domestic and international customers. With over three decades of experience, it has been setting global benchmarks in all aspects of project management, corporate governance, quality, health safety environment (HSE) and operational excellence," the company further mentioned.

On the stock-specific front, L&T shares were last seen trading 0.81 per cent lower at Rs 3,520.55.

On technical setup, the counter was trading lower than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but higher than the 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 45.70. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 52.44 against a price-to-book (P/B) value of 7.57. Earnings per share (EPS) stood at 67.68 with a return on equity of 14.44.

Around 38,000 shares changed hands today on BSE at the time of writing this story. The figure was lower than the two-week average volume of 1.51 lakh shares. Turnover on the counter came at Rs 13.29 crore, commanding a market capitalisation (m-cap) of Rs 4,83,733.43 crore.