Rs 4,50,700 crore order book: This multibagger civil construction company bags new orders worth Rs 30,000 crore from the Middle East!

The stock is up by 55 per cent in 1 year and gave multibagger returns of 175 per cent in the last 3 years.

Larsen & Toubro Ltd (L & T Ltd) informed that the hydrocarbon business (L&T Energy Hydrocarbon – LTEH) of the company has received a mega offshore order worth approx. Rs 15,000 crore from a prestigious client in the Middle East. The scope of work comprises engineering, procurement, construction and installation of a new large offshore platform and brownfield work of integration with existing facilities. The Hydrocarbon Business is executing several domestic and international offshore projects and is committed to expanding its regional presence across adjacent and business-conducive geographies.

Earlier, the Hydrocarbon Business (L&T Energy Hydrocarbon – LTEH) of L & T secured a Letter of Intent for another Ultra-Mega Onshore project worth more than Rs 15,000 crore from a prestigious client in the Middle East further to the recent ultra-mega project award for a gas compression plant. The scope of work comprises engineering, procurement, & construction for a gas processing plant consisting of inlet separation facilities, booster compression system, amine gas recovery unit, dehydration unit, mercury removal unit, NGL recovery unit and sales gas compression system in new onshore facilities and its integration with existing gas processing plants.

Organized under Offshore, Onshore EPC, Modular Fabrication, Advanced Value Engineering & Technology (AdVENT) and Offshore Wind Farm Business Groups, LTEH offers integrated design-to-build solutions across the hydrocarbon sector to domestic and international customers. With over three decades of rich experience, LTEH has been setting global benchmarks in all aspects of project management, corporate governance, quality, health safety environment (HSE) and operational excellence.

The company delivered strong Quarterly Results, demonstrating its continued growth trajectory. Revenue for Q2FY24 reached Rs 51,024.04 crore, representing a significant 19.32 per cent increase year-over-year. This growth was further reflected in the company's operating profit, which stood at Rs 8,173.45 crore, and its PAT, which reached Rs 3,855.55 crore, marking an impressive 36.76 per cent year-over-year surge.

The company's robust order book, valued at Rs 4,50,700 crore as of September 2023, underscores its strong market position and future growth prospects. This order book represents a 22 per cent increase from September 2022, with a well-balanced domestic and international mix, with 65 per cent of the orders coming from domestic sources and 35 per cent from international markets.

Today, the shares of Larsen and Toubro Ltd plunged 0.70 per cent to Rs 3.088.15 per share with an intraday high of Rs 3,112 and an intraday low of Rs 3,076.30. Recently, a block deal took place where AIA VCC - AIA Asian Equity Fund acquired 55,073 shares from AIA International Limited at a price of Rs 3,056.50 per share.

The company has been maintaining a healthy dividend payout of 37.20 per cent. The stock is up by 55 per cent in 1 year and gave multibagger returns of 175 per cent in the last 3 years. Investors must keep this Large-Cap stock. 

Disclaimer: The article is for informational purposes only and not investment advice.