Shares of Larsen & Toubro (L&T) shares were trading almost 2% lower on Thursday despite the company's announcement that it was awarded significant contracts for its metallurgical and material handling business.
Its construction arm bagged an order from Northern Coalfields Ltd, a subsidiary of Coal India Ltd (CIL), for a coal processing and load-out package to be installed at the Dudhichua Mines in Uttar Pradesh.
Despite the announcement, the share price of L&T opened at day's high of Rs 918.80 and later touched an intraday low of Rs 905 on BSE, falling 1.8% against the last closing of Rs 921.95.
Larsen & Toubro is trading lower than 5, 20, 50, 100 and 200-day moving averages. The stock price of L&T has fallen 1.5% in one week, 9.4% in one month and 30% since the beginning of the year.
Market capitalisation of the firm stood at Rs 1,27,247 crore as of today's closing session. L&T stock has fallen after 2 days of consecutive gain.
The Metallurgical and Material Handling Business of L&T Construction received a significant contract, with the deal value in the range of Rs 1,000-Rs 2,500 crores.
"The scope of work involves EPC for double stream coal sizing Et transportation system covering semi-mobile sizing system, high-capacity speciality conveyors and an automated loading system," the company said.
The business has also secured new and add-on orders from its existing customers, L&T added.
L&T shares closed 1.70% lower at Rs 906.30 apiece on BSE today.
Commenting on the development, Keshav Lahoti - Associate Equity Analyst, Angel Broking said, "This is a positive development for the company. Although order size is quite small compared to its order book of Rs. 3 lakh crore. Considering the small size of the order, the stock has not reacted to this news. The market would be keenly watching the Government spends on the infrastructure sector in the environment of muted private CAPEX. Things are in an improving trend for the company as labourers count are increasing and the economy is on the path of recovery."