Rs 4,50,700 crore order book: This multibagger civil construction company bags new order worth Rs 5,000 crore from GMR Visakhapatnam International Airport Ltd!

The stock is up by 57 per cent in 1 year and gave multibagger returns of over 200 per cent in the last 3 years.

Larsen & Toubro Ltd (L & T Ltd) informed that the Buildings & Factories & Transportation Infrastructure businesses of L&T Construction have secured a prestigious project from the GMR Visakhapatnam International Airport Limited for the Engineering, Procurement and Construction of the greenfield Bhogapuram International Airport at Bhogapuram, Andhra Pradesh. The project will initially be developed to handle 6 MPA (million passengers per annum) capacity to be further enhanced to a capacity to handle 12 MPA. The order is worth approx. Rs 5,000 crore.

The key development works includes cut & fill works, terminal works with airports systems, ATC tower, airfield development works (South Runway 3800m Length, Apron, Taxiways, Airfield Ground Lighting, Fuel Hydrant works & other facilities), landside facilities (roads, landscapes, etc.), utilities & other support facilities. Larsen & Toubro is presently executing the construction works of major airports at Delhi, Hyderabad, Bangalore, Chennai, and Navi Mumbai. The order further reinforces L&T’s capability to deliver a greenfield airport project end-to-end and affirms the Company’s EPC capabilities and strengthens the trust and satisfaction reposed by customers demonstrated by this repeat order from GMR.

The company delivered strong Quarterly Results, demonstrating its continued growth trajectory. Revenue for Q2FY24 reached Rs 51,024.04 crore, representing a significant 19.32 per cent increase year-over-year. This growth was further reflected in the company's operating profit, which stood at Rs 8,173.45 crore, and its PAT, which reached Rs 3,855.55 crore, marking an impressive 36.76 per cent year-over-year surge.

The company's robust order book, valued at Rs 4,50,700 crore as of September 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 65 per cent of the orders coming from domestic sources and 35 per cent from international markets.

On Tuesday, the shares of Larsen and Toubro Ltd plunged 0.50 per cent to Rs 2,960.2 per share with an intraday high of Rs 2,983.75 and an intraday low of Rs 2,956.40.

The company has been maintaining a healthy dividend payout of 37.20 per cent. The stock is up by 57 per cent in 1 year and gave multibagger returns of over 200 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.