L&T Shares Hit Record High On Bagging 'Mega-Order' For Its Heavy Civil Infra Business
Although L&T has not specified the order value, it classifies projects worth over Rs 7,000 crore as mega-orders.
Shares of Larsen & Toubro Ltd. hit a record high on Friday after it won a 'mega-order' for its heavy civil infrastructure business.
The company was awarded a contract by The National High-Speed Rail Corporation Ltd. to construct the 135.45 km stretch of the MAHSR-C3 package, which is part of the Mumbai-Ahmedabad high-speed rail project, , according to an exchange filing.
Although L&T has not specified the order value, it classifies projects worth over Rs 7,000 crore as mega-orders, the filing said.
The scope includes building viaducts, stations, major river bridges, depots, tunnels, earth structures, and auxiliary works, it said.
The Mumbai Ahmedabad High-Speed Rail Project will cover approximately 508 km, passing through Maharashtra, Dadra & Nagar Haveli, and Gujarat, with 12 stations. With this package, L&T will execute 92% of the main line between Shilphata, Maharashtra and Ahmedabad, Gujarat.
Separately, the company said its board will meet on July 25 to consider the proposals for the buyback of shares and the declaration of a special dividend for this fiscal. If approved, the record date for the same is set for Aug 2.
Shares of L&T rose 3.36% intraday before paring gains to trade 2.37% higher as of 10:23 a.m. This compares to a 0.82% dip in the NSE Nifty 50.
Total traded volume so far in the day stood at 7.3 times its 30-day average. The relative strength index was at 72.5, indicating that the stock may be overbought.
Of the 41 analysts tracking the company, 38 maintain a 'buy' rating, one recommends a ‘hold’, and two indicate a ‘sell', according to Bloomberg data. However, the average 12-month consensus price target implies an upside of 0.8%.