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Shares of Larsen & Toubro (L&T) were up 2 per cent at Rs 1,538 on the BSE in intra-day trade on Friday in an otherwise range-bound market. The stock of the construction & engineering major was trading at its highest level since March 12, 2021. It was hovering close to its all-time high level of Rs 1,593 touched on February 2, 2021. The S&P BSE Sensex was up 0.10 per cent at 52,282 points at 09:25 am.
L&T has outperformed the market by surging 15 per cent in the past month on expectations of healthy orders from both domestic and international markets. In comparison, the benchmark index was up 7.3 per cent during the same period.
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L&T has rightly prioritised its Balance Sheet strength over growth during the second COVID wave. While COVID 2.0 has brought on similar challenges as last year, construction activity has been ongoing unlike last year and hence, the impact should be lower than last time, analysts said.
While announcing its March quarter results on May 14, L&T management said it is witnessing good ordering traction from segments such as Metro, Railways, Roads, Expressways, Water, Renewables and Power T&D. It guided for low to mid-teen growth in revenues and order inflow for FY22. The management indicated that the tender pipeline remains strong at Rs 9.6 trillion for FY22, comprising of domestic orders worth Rs 6.6 trillion and international orders of Rs 3 trillion.
Stock Covered in the news
