L&T shares hit 52-week high on winning large orders; CLSA raises target price
Larsen & Toubro (L&T) share price rose 3% to hit a fresh 52-week high Thursday after the construction major said its buildings & factories business bagged orders in the large category which are in the range of ₹2,500-5,000 crore. L&T shares gained as much as 2.90% to ₹a high of ₹3,114.00 apiece on the BSE.
The business has secured an order to construct a residential township in Bengaluru involving the construction of 3,627 apartments spread across 19 Towers. The total built up area will be approximately 9.7 million sq.ft., the engineering and construction major said.
The business also secured orders from a developer to construct Commercial Towers in Hyderabad. The scope of work includes construction of 2 buildings with a combined built-up area of 4.2 million square feet, L&T said in a release.
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Additionally, the business has bagged an order from the Indian Institute of Technology, Kanpur to construct a Super Specialty Hospital & Academic Block as part of the Gangwal School of Medical Sciences and Technology. The project involves construction of a 500 bedded Hospital block (G+5 floors) & Academic Block (G+5 floors).
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Global brokerage firm CLSA maintained a ‘Buy’ rating on L&T and raised the target price to ₹3,600 per share from ₹3,240 earlier.
CLSA believes India’s urbanisation and decarbonisation has emerged as a decadal theme led by the government’s focus on fixing the problems of urban India which shall open growth opportunities for contractors.
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The brokerage notes that Mumbai city has planned spending of over $40 billion to decongest and decarbonise with a slew of metro rail and complex bridges, with L&T winning $3.3 billion in orders. Over the past seven days L&T landed another $1.5 billion in orders for Mumbai infrastructure building, indicating continuing spending on the theme.
“Overall, L&T’s outlook remains robust, and we believe it is likely to achieve 50% of its FY24 guidance inflow in the 1H itself with lofty Middle Eastern orders yet to come,” CLSA said.
L&T share price has seen a decent rally as the stock has gained over 25% in the last three months and more than 48% year-to-date (YTD).
At 3:20 pm, L&T shares were trading 2.31% higher at ₹3,096.05 apiece on the BSE.
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Updated: 05 Oct 2023, 03:22 PM IST
