L&T: Larsen & Toubro Construction’s Power Transmission & Distribution division has received significant orders in the Middle East region.
According to an exchange filing, the company has received an order for the engineering, supply, construction, installation, testing, and commissioning of a 400/132kV Substation in the United Arab Emirates.
On December 28, at 10:38 a.m., L&T stocks were trading in the red, down 0.36 percent, at ₹3531.00 a piece on the BSE.
In addition, the scope includes associated Transformer, Reactor, and Substation Control and Monitoring Systems (SCMS).In Kuwait, the company was awarded a contract to build 400kV overhead transmission lines and 400kV underground cable interconnections. “This transmission segment with a route length of more than 100 kilometers will help evacuate and generate power, the company stated in the filing.
even though Larsen and Toubro Ltd’s (L&T) September quarter (Q2FY24) was marked by healthy revenue growth and a strong order pipeline. Concerns about its core business margin lingered. The engineering and capital goods firm reduced its Ebitda margin guidance for FY24 from 9% to 8.5-9.0%. This could explain why the stock experienced some selling pressure on Wednesday, with the stock closing about 1% lower.
Abhishek Jain, Head of Research, Arihant Capital Jain said in August this year, while sharing his fundamental views on the company with Mint, Strengthened infrastructure business contributed to revenue growth, although last quarter showed revenue weakness. L&T’s buyback at ₹3,000 boosted the stock even more. The rise appears to be supported by favorable business conditions, but continued growth is dependent on order retention and execution efficiency. Investors looking out a year should keep a close eye on order inflow and execution performance.
