Rs 5,64,223 Crore Order Book: Civil Construction Company secures an Overseas Order for Water & Effluent Treatment Business
The stock is up by 3 per cent from its 52-week low and has given multibagger returns of over 200 per cent in the last 5 years.
Larsen & Toubro's (L&T) Water & Effluent Treatment (WET) Business, in partnership with Lantania of Spain, has secured a significant overseas order from ACWA Power to construct the Ras Mohaisen Desalination plant in Saudi Arabia. As the lead partner in the joint venture, L&T will oversee the design, procurement, construction, testing, and commissioning of this large-scale seawater reverse osmosis desalination facility. The project encompasses a 300,000m³/day capacity plant, including intake and outfall facilities, process units, pumping stations, a substantial 600,000 cubic meter potable water storage facility, and a solar PV plant, all integrated with advanced automation systems.
This order, valued between Rs 2,500 crore and Rs 5,000 crore, marks L&T's second major desalination project in Saudi Arabia, solidifying its growing presence in the Middle East. The Ras Mohaisen plant will provide drinking water to the Makkah Al-Mukarramah and Al-Baha regions, benefiting approximately one million people. This achievement underscores L&T's strategic focus on expanding its regional footprint in favourable business environments and reinforces its expertise in delivering complex water infrastructure projects
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.
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According to Quarterly Results, the net sales increased by 17 per cent to Rs 64,668 crore and net profit increased by 14 per cent to Rs 3,359 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 18 per cent to Rs 1,81,343 crore and the net profit increased by 10 per cent to Rs 9,540 crore in 9MFY25 compared to 9MFY24. Looking at its annual results, the net sales increased by 20.6 per cent to Rs 2,21,113 crore and the net profit increased by 23.33 per cent to Rs 15,570 crore in FY24 compared to FY23.
The company has a market cap of Rs 4 lakh crore and has been maintaining a healthy dividend payout of 34.6 per cent. Life Insurance Corporation of India (LIC) owns a 12.61 per cent stake in the company as of December 2024. The company has a robust order book valued at Rs 5,64,223 crore as of December 31, 2024. The stock is up by 3 per cent from its 52-week low and has given multibagger returns of over 200 per cent in the last 5 years. Investors must keep this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.