L&T shares rise as company bags 'large' order in Assam

Shares of Larsen & Toubro Ltd (L&T) nudged higher on Tuesday after the company announced to bag a 'large' order for its transport infrastructure (TI) business. However, L&T did not disclose the exact value of the order but its 'large' orders are valued in the range of Rs 2,500-5,000 crore.

The transportation infrastructure business of L&T Construction has won a prestigious project contract, to construct the Palashbari to Sualkuchi Cable Stayed Bridge across the river Brahmaputra in Assam. The project has been awarded by the Public Works Roads Department (PwRD), Assam to construct a 12.21 Km long bridge connecting Palashbari and Sualkuchi, said the filing.

Following the announcement, shares of Larsen & Toubro advanced 1.87 per cent to Rs 3,403 on Tuesday, with its total valuation hitting Rs 4.7 lakh crore mark. The scrip had settled at Rs 3340.50 in the previous trading session on Monday. The stock has surged about 60 per cent to 52-week lows.

The project will have a 3.6 Km long cable-stayed bridge portion along with a 5.61 Km approach on Palashbari side and a 3.0 Km approach on Sualkuchi side including wetland approach viaducts. The maximum span of the extradosed cable stayed portion will be 165m. The project is scheduled to be completed in 48 months, said L&T in its filing.

"The bridge will directly connect both the towns. The village of Sualkuchi is one of the world’s largest weaving center’s where traditional Assamese garments are made with indigenous materials like Muga, the golden silk, that is only produced there. The bridge will also directly connect to the Lokpriya Gopinath Bordoloi International Airport, Assam," added the filing further.

L&T reported a 15.5 per cent year-on-year (YoY) increase in net profit at ₹2,947.4 crore for the third quarter that ended December 31, 2023, but missed the street's estimates. Engineering and construction conglomerate's revenue from operations increased 18.8 per cent YoY to Rs 55,127.8 crore in Q3FY24.

Centrum Broking said that order book position was strong in Q3 but margins remained subdued. It had an add rating on L&T after Q3 results with a target price of Rs 3,750. LKP Securities maintained its 'buy' tag on the counter with a target price of Rs 3,865, citing strong order pipeline which shows a healthy ahead.

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