Larsen and Toubro (L&T) share price rallied over 4 per cent in early deals on Monday amid report that L&T consortium has emerged as the lowest bidder in tender for bullet train bridges. However, the stock soon pared early gains to slip into negative terrain in line with benchmark indices, falling as much as 13.71 per cent from day's high of 1,338.40 to hit an intraday low of Rs 1,154.85 on the Bombay Stock Exchange.
Early today, L&T shares opened tad lower at Rs 1,278 against the previous closing price of Rs 1,283.15 on the BSE. During the volatile trading session, the stock hit an intraday high and low of Rs 1,338.40 and Rs 1,154.85, respectively. L&T settled day's trade at Rs 1,234.75, down 3.77 per cent, while its market cap fell to Rs 1,73,390.60 crore. Meanwhile, the BSE SENSEX ended at 45,553.96, down 1,406.73 points or 3 per cent.
On the volume front, there was surge in selling as 14.48 lakh shares changed hands over the counter as compared to two-week average volume of 3.09 lakh shares.
The stock has underperformed Sensex by declining 5 per cent YTD (year-to-date) versus 12 per cent jump in the BSE benchmark, despite getting "buy" rating on strong future prospects. The engineering and construction major has secured a series of order so far in the December quarter. The stock touched its 52-week high of Rs 1,383.85 and 52-week low of Rs 661.05 on 1 February, 2020 and 25 March, 2020, respectively.
Brokerage firm Nomura has maintained a buy rating on L&T stock and raised the target to Rs 1,510 per share, citing that the government's focus on infrastructure bodes well for the company. Jefferies, too, has assigned its "buy" call on the stock, with the target at Rs 1,270 per share.
In an exchange filing, L&T on Monday said that its defence arm, L&T Defence, has been awarded the coveted 'Green Channel Status' for major Naval weapon delivery systems from the Directorate General Quality Assurance (DGQA), Ministry of Defence (MoD), Government of India.
The grant of Green Channel Certificate to a firm provides deemed registration status, waiver of pre-dispatch inspection and acceptance of stores under supplying firm's guarantee or warranty against the contracts concluded by various procurement agencies under MoD, the company said. L&T Defence was accorded the status after stringent audits of its production facilities, quality systems, and products, carried out by the DGQA.
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