Rs 5,10,100 Crore Order Book: LIC-Backed Civil Construction Company Wins New Orders Approx. Rs 10,000 Crore for Power Transmission & Distribution Business
The stock is up 24.7 per cent from its 52-week low and gave multibagger returns of over 150 per cent in the last 3 years.
The Power Transmission & Distribution (PT&D) vertical of Larsen & Toubro has won new orders in the Middle East and Africa for expanding and strengthening the electricity grids at high-voltage levels. The orders include the implementation of an Energy Management System for a country-wide electricity network. The orders are worth approx. Rs 10,000 crore. One of the orders that the business vertical has won, is in consortium with a leading original equipment manufacturer to build the new National System Control Centre for Kenya. The transmission hub will manage the power flow in the country by integrating diverse generation sources and by dispatching power based on merit order.
The hub will be a crucial element in Kenya’s grid for ensuring stable, efficient and reliable operations given variable renewable energy sources getting added and the high-voltage regional interconnections being established. The scope also involves the implementation of a backup energy management system at a distant location. L&T will leverage its experience in executing transmission & distribution projects and its expertise in Digital Energy Solutions for this project. In the Middle East, new orders have been secured for the turnkey construction of high-voltage transmission lines in Saudi Arabia. Additional Gas Insulated Substation orders have been received in an ongoing power system expansion project in Qatar.
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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 Rs 4.91 lakh crore and has been maintaining a healthy dividend payout of 34.6 per cent. Life Insurance Corporation of India (LIC) owns a 12.31 per cent stake in the company as of September 2024. The company has a robust order book valued at Rs 5,10,100 crore as of September 30, 2024. The stock is up 24.7 per cent from its 52-week low and gave multibagger returns of over 150 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.