Rs 4,69,800 crore order book: This civil construction company concludes divestment of its entire 51 per cent stake in JV with Canada Pension Plan Investment Board

The stock is up by 75 per cent from its 52-week low and gave multibagger returns of 188 per cent in the last 3 years.

Larsen & Toubro Ltd (L&T) completed the divestment of its 51% stake in L&T Infrastructure Development Projects Limited (LTIDPL), a joint venture with Canada Pension Plan Investment Board (CPP Investments) which held the remaining 49% stake. LTIDPL is a pioneer in Public-Private-Partnership (PPP) model for infrastructure development in India. The acquisition of both L&T and CPP Investments' stakes by M/s Epic Concesiones Private Limited, an investee company of Edelweiss Infrastructure Yield Plus Strategy, aligns with L&T's strategy of exiting non-core businesses to reduce its exposure to asset-heavy projects and improve its Return on Equity.

The list of subsidiaries of L&T IDPL which have ceased to be subsidiaries of the Company:

1. Ahmedabad-Maliya Tollway Limited

2. L&T Deccan Tollways Limited

3. L&T Interstate Road Corridor Limited

4. L&T Rajkot-Vadinar Tollway Limited

5. L&T Samakhiali Gandhidham Tollway Limited

6. L&T Sambalpur Rourkela Tollway Limited

7. L&T Transportation Infrastructure Limited

8. L&T-Chennai Tada Tollway Limited

9. Panipat Elevated Corridor Limited

10. PNG Tollway Limited

11. Vadodara Bharuch Tollway Limited

12. Kudgi Transmission Limited

13. Watrak Infrastructure Private Limited

14. Rewin Infrastructure Limited

Also Read: What is Book Value and Book Value Per Share? Importance & limitations of book value!

Earlier, L&T GeoStructure, a wholly owned subsidiary of Larsen & Toubro, recently secured several significant contracts from across India. These projects include constructing a South Breakwater Extension, Groynes, and a Breakwater Toe Protection Wall at Paradip Port in Odisha. This involves extending the existing breakwater by 500 meters, building 10 Groynes totaling 1650 meters on the north side of the North Breakwater, and using steel/sheet piles for breakwater toe protection to deepen the approach channel.  

Additionally, L&T GeoStructure was awarded a contract by Hindustan Shipyard Limited to upgrade Slipway-4 in Visakhapatnam, Andhra Pradesh. This project encompasses upgrading the slipway itself, constructing a crane track, and installing essential services like gas utilities and a firefighting system. They will also supply and erect a 300 MT Goliath crane. Finally, the company secured an order from a well-regarded real estate developer in Chennai for substructure works, including building a retention system with anchoring and deep excavation. The total order is approx. Rs 2,500 crore.

The company's robust order book, valued at Rs 4,69,800 crore as of December 31, 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 61 per cent of the orders coming from domestic clients and 39 per cent from international clients.

On Wednesday, the shares of Larsen and Toubro Ltd plunged 0.78 per cent to Rs 3,754.95 per share from its previous closing of Rs 3,784.5 with an intraday high of Rs 3,800 and an intraday low of Rs 3,750.25. The stock’s 52-week high is Rs 3,859.65 while its 52-week low is Rs 2,168.65. The stock is up by 75 per cent from its 52-week low and gave multibagger returns of 188 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.