Rs 4,50,700 crore order book: This multibagger civil construction company incorporates a new wholly-owned subsidiary for semiconductors; hits 52-week high!

The stock is up by 49.79 per cent in 1 year and gave multibagger returns of 178.87 per cent in the last 3 years.

Larsen & Toubro (L&T), a leading Indian multinational conglomerate, has announced the incorporation of a wholly-owned subsidiary, L&T Semiconductor Technologies Limited (LTST), to venture into the semiconductor industry. This strategic move aligns with the Indian government's initiatives to promote domestic semiconductor manufacturing and establish India as a global semiconductor hub.

LTST will focus on fabless semiconductor chip design and product ownership, leveraging L&T's diverse engineering expertise and proven track record in technology development. The company aims to capitalize on the burgeoning global semiconductor market, projected to reach a trillion-dollar valuation by 2030.

India's semiconductor market, according to the Strategic Investment Research Unit (SIRU), has been estimated to be worth USD 23.2 billion and will continue to expand at a compound annual growth rate (CAGR) of 17.10 per cent to reach USD 80.3 billion by 2028. This growth is driven by factors such as increasing demand for electronics, government support schemes, and the discovery of lithium reserves in Jammu and Kashmir, a critical raw material for semiconductor manufacturing.

L&T's foray into the semiconductor industry is a testament to its commitment to innovation and its vision to contribute to India's technological advancement. The company's expertise in engineering and manufacturing, coupled with the government's support, positions LTST well to capture a significant share of the growing semiconductor market.

As of September 30, 2023, L&T has reported a significant 72 per cent Year-on-Year (YoY) boost in order inflows and a commendable 19 per cent YoY increase in revenue. The company boasts a robust order book, standing at a substantial Rs 4,50,700 Crore, emphasizing its solid foundation for future business.

Today, Shares of Larsen & Toubro traded on a new 52 week high of Rs 3,122 per share, up 1.36 per cent from its previous closing of Rs 3080.05.

The company has been maintaining a healthy dividend payout of 37.20 per cent. The stock is up by 49.79 per cent in 1 year and gave multibagger returns of 178.87 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.