The stock of the infra major has gained 2% this year and fallen 0.74% in the last one year. Shares of Larsen & Toubro (L&T) gained 4.12% to trade at ₹3,794.70 on Friday, moving close to the 52-week high of ₹3,963. The infra stock was the top gainer on Sensex and Nifty as the Telangana government confirmed plans to purchase L&T's stake in Phase-I of the Hyderabad Metro Rail project for ₹2,000 crore and take on more than ₹13,000 crore in project debt. Meanwhile, Nifty 50 index was set to close lower for a sixth straight session, highlighting L&T’s relative strength in a weak market.
According to a brokerage note by JM Financial, L&T's exit from the Hyderabad Metro project removes a long-term overhang on the stock and is expected to be modestly accretive to earnings per share. The brokerage stated, “Exits from such an asset will save L&T more than ₹600 crore on a Profit Before Tax / Profit After Tax level, and can also see an EPS uptick of 4%.”
JM Financial further expects that the company’s return on equity could improve by 60-70 basis points as a result of the transaction. Earlier, reports suggested L&T had sought ₹5,900 crore plus debt absorption, but the present agreement focuses on the company’s main requirements.
The anticipated exit is expected to improve key financial metrics for L&T, including an uplift in EPS and return on equity, and may provide the company with greater flexibility in future capital allocation.
The stock of the infra major has gained 2% this year and fallen 0.74% in the last one year. Total 2.22 lakh shares of the firm changed hands amounting to a turnover of Rs 82.98 crore on BSE.
In terms of technicals, the relative strength index (RSI) of L&T stands at 54.3, signaling it's trading neither in the overbought zone nor in the oversold zone. L&T stock has a one-year beta of 1.2, indicating high volatility during the period. L&T shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock hit a 52-week low of Rs 2967.75 on April 7, 2025 and rose to a 52 week high of Rs 3963 on December 10, 2024.
Exam reforms: Tech titan Nandan Nilekani picked by PM Modi to fix national public examination system 
'Tax officers struggled for own land': Nirmala Sitharaman slams laidback attitude of govt depts
CBDT issues new crypto reporting guidance: No new tax, but exchanges must track and report all transactions
Did Cockroach Janta Party's 'Chalo Sansad' 2.0 threat trigger Dharmendra Pradhan's resignation? What we know so far
'Will discharge my responsibilities with complete humility': Pralhad Joshi after being appointed Education Minister
AI Data Centers, Aerospace & Gas Turbines: What's Powering Indo-MIM's Future Growth?
Best Healthcare Stocks: Gaurang Shah's Outlook On Apollo Hospitals, Fortis & The Manipal Health IPO
Is Indo-MIM's IPO Valuation Justified? Here's Why The Company Sees Strong Growth Ahead
Treasury Bills Explained: Why T-Bills Are One Of The Safest Short-Term Investment Options
FDs vs Markets: Where Should You Keep Your Short-Term Money?
Gland Pharma stock: Price target of Rs 3,250 likely in medium term, says analyst 
Metal recycling stocks to buy: Gravita, Pondy Oxides, Jain Resource among top picks
TRIL shares: Should you average the falling stock? Here's 'fixed and final' stop loss
Adani Power: 45 GW target, Rs 2 lakh crore capex plan among conference call highlights 
ITC Hotels, Chalet, Ventive, IHCL, SAMHI: Hotel stocks to buy despite travel disruptionsExam reforms: Tech titan Nandan Nilekani picked by PM Modi to fix national public examination system 'Tax officers struggled for own land': Nirmala Sitharaman slams laidback attitude of govt depts
Delhi targets traffic bottlenecks on Aruna Asaf Ali Marg with ₹1.97 crore elevated road studyAI Data Centers, Aerospace & Gas Turbines: What's Powering Indo-MIM's Future Growth?
'This is the behaviour of...' : Congress leader Kanhaiya Kumar detained by Delhi police after Kerala House altercation
