Rs 4,909 billion order book: LIC-backed civil construction company bags mega orders worth approx. Rs 15,000 crore to Build Advanced Grid Systems
The stock is up 34 per cent from its 52-week low and gave multibagger returns of 115 per cent in the last 3 years
Larsen & Toubro Ltd.'s Power Transmission & Distribution division has secured mega orders worth approx. Rs 15,000 crore in the Middle East to construct advanced grid systems. These orders encompass the development of high-voltage direct current (HVDC) transmission lines and gas-insulated substations (GIS). The projects are aimed at expanding and fortifying the regional electricity grids at elevated voltage levels, underscoring L&T's pivotal role in enhancing power infrastructure in the Middle East.
Saudi Arabia
The different operating regions in Saudi Arabia’s national electricity network are being interconnected through High Voltage Direct Current links that enable exchange of power between regions and enhanced system resilience. L&T has secured orders to establish ±500kV HVDC Transmission Links associated with these interconnections. L&T has also won orders for three more packages involving two 380kV overhead transmission lines and a bulk supply 380kV Gas Insulated Substation. These elements contribute significantly to the renewable generation interconnection and fortification of the grid.
United Arab Emirates
In Abu Dhabi, L&T has received an order to build two major 400kV Gas Insulated Substations. In addition to civil works, the scope also involves Series Current Limiting Reactors, Auto Transformers, related control, protection, substation monitoring & alarm systems including fault and power quality monitoring, telecommunication systems and integration with the Load Dispatch Centre. These substations will enhance the power transfer capacity of the electricity grid.
On Wednesday, the shares of Larsen and Toubro Ltd gained 0.20 per cent to Rs 3,798.95 per share from its previous closing of Rs 3,791.50 with an intraday high of Rs 3,813.60 and an intraday low of Rs 3,780. The stock’s 52-week high is Rs 3,948.60 and its 52-week low is Rs 2,856.85.
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About the Company
Larsen & Toubro (L&T) is a massive Indian conglomerate with its fingers in many pies. Their core business is engineering, procurement and construction (EPC) solutions across various sectors like infrastructure, power, hydrocarbon (oil & gas) and defence. They also manufacture custom-designed machinery for these industries and even have a real estate arm. L&T is a major player in IT services through subsidiaries like L&T Infotech and Mindtree and provides financial services like rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, toll management and power generation.
The company has a market cap of over Rs 5 lakh crore and has been maintaining a healthy dividend payout of 34.6 per cent. Life Insurance Corporation of India (LIC) owns an 11.63 per cent stake in the company as of June 2024. The company has a robust order book valued at Rs 4,909 billion as of June 30, 2024. The stock is up 34 per cent from its 52-week low and gave multibagger returns of 115 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.