L&T bags ‘large’ orders for power transmission & distribution business; shares react – EQ
In Short : Larsen & Toubro (L&T) has secured ‘large’ orders worth ₹2,500-₹5,000 crore for its Power Transmission & Distribution business in India and overseas. Projects include a 765kV substation in Western India and transmission lines in Saudi Arabia. Despite the announcement, L&T shares fell 1.17%, reflecting mixed market sentiment. The orders reinforce L&T’s strong position in the sector.
In Detail : Larsen & Toubro Ltd (L&T) on Monday said its power transmission and distribution (PT&D) vertical secured new ‘large’ orders in India and abroad. In terms of valuations, L&T’s project classification of a large order is between Rs 2,500 crore and Rs 5,000 crore.
“It has won an order for setting up a 765kV Gas Insulated Substation (GIS) in western India and another order for the turnkey construction of a transmission line associated with evacuation of power in the same region. In Saudi Arabia, the vertical has received orders for setting up two 380kV overhead lines. The combined length of these transmission lines exceeds 130 route kilometer and are meant for ensuring reliable power supply to the key townships around Riyadh,” the multinational company stated in a BSE filing.
“These apart, PT&D has also received turnkey orders for construction, supply, installation, testing and commissioning of two 132/11kV GIS in the UAE and for a 132kV GIS in Qatar. Further to this, additional orders have been received in ongoing projects in India and Oman. These orders indicate the continued momentum in investments related to efficient grid infrastructure in India and abroad, and underscore customer confidence in L&T’s capabilities,” L&T added.
On the stock-specific front, L&T shares were last seen trading 1.17 per cent lower at Rs 3,450. At this price, the stock has shed 5.92 per cent on a year-to-date (YTD) basis.
The counter traded lower than the 5-day, 100-, 150-day and 200-day simple moving averages (SMAs) but higher than the 10-day, 20-, 30-day and 50-day SMAs. Its 14-day relative strength index (RSI) came at 59.81. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The stock has a price-to-equity (P/E) ratio of 47.20 against a price-to-book (P/B) value of 7.19. Earnings per share (EPS) stood at 73.01 with a return on equity (RoE) of 15.22. According to Trendlyne data, L&T has a one-year beta of 1.4, indicating high volatility.
