Rs 7,000 crore plus rail project: This multibagger unveils first-ever buyback plan!
The stock has witnessed significant buying activity in the last 3 years as it has surged more than 175 per cent.
On Friday, the shares of Larsen & Toubro Limited soared by 3.88 per cent, the stock hits fresh 52-week high mark of Rs 2594.40 per share on BSE. The scrip witnessed a spurt in volume by more than 2.44 times.
On July 21, 2023, a momentous achievement for L&T's Heavy Civil Infrastructure business as the National High-Speed Rail Corporation Limited (NHSRCL) formally awards them the prestigious mandate for constructing the 135.45 km stretch of the MAHSR – C3 package. This package is a vital part of the ambitious Mumbai Ahmedabad High-Speed Rail Project.
The scope of work for the MAHSR – C3 package encompasses the construction of viaducts, stations, major river bridges, depots, tunnels, earth structures, and other auxiliary works.
The Mumbai-Ahmedabad High-Speed Rail project, also known as the MAHSR Bullet Train project, will span approximately 508 km, with 155.76 kms in Maharashtra, 4.3 kms in the Union Territory of Dadra & Nagar Haveli, and 348.04 kms in Gujarat. It will have 12 stations along the route and operate at an impressive speed of 320 Kmph, covering the entire distance in about 2 hours with limited stops and in 3 hours with all stops.
Securing this project marks a significant milestone for L&T, as it now undertakes 92 per cent of the main line from Shilphata in Maharashtra to Ahmedabad in Gujarat. The company has greatly bolstered its expertise in building faster and reliable mass transit systems, aligning seamlessly with its strategic objectives.
Commenting on the occasion, Mr S V Desai, Whole Time Director & Senior Executive Vice President (Civil Infrastructure) said “This is the second largest package which L&T has won in this prestigious MAHSR project, and we are humbled by the trust reposed in us by our client, NHSRCL. By deploying state-of-the-art construction methods and extensive digital technologies, we will endeavour to complete this project, leveraging the experience from other MAHSR packages that we are currently executing.”
Larsen & Toubro (L&T) is a renowned Indian multinational with a global presence, boasting a USD 23 billion turnover. The company excels in EPC Projects, Hi-Tech Manufacturing, and Services, operating across more than 50 countries. L&T's unwavering commitment to customer satisfaction and its relentless pursuit of top-notch quality have been key factors in securing and maintaining its leadership position in various business sectors for over eight decades.
Projects are categorized into four value-based classes in Rs (Crore). The categories include: Significant (Rs 1,000 to Rs 2,500), Large (Rs 2,500 to Rs 5,000), Major (Rs 5,000 to Rs 7,000), and Mega (exceeding Rs 7,000). The project at hand falls under the Mega category, signifying its substantial size and significance for the company.
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Larsen & Toubro’s Upcoming First-Ever Buyback Plan, board meeting is on July 25. It will include discussions on a proposal for equity share buyback and a special dividend on equity shares for the financial year 2023-24.
The stock has witnessed significant buying activity in the last 3 years as it has surged more than 175 per cent. As they continue to pursue large-scale projects and maintain their strong track record, L&T is expected to play a pivotal role in shaping India's infrastructure landscape for the years to come. Investors to keep close eye on this trending stock.
Disclaimer: The article is for informational purposes only and not investment advice.