Shares of Larsen & Toubro (L&T) hit an all-time high of Rs 2,361.90, up 2.5% on the BSE in Friday’s trade, as the civil construction major is expected to report strong order inflow and healthy execution in the March quarter (Q4FY23).
The stock surpassed the previous high of Rs 2,329.90 on April 11, 2023. It has gained 10% over the past month, compared with a 5.5% gain for the S&P BSE Sensex. Moreover, L&T’s market price has soared 37% over the past year, compared with the benchmark index’s gain of 5.7%.
L&T’s board of directors is scheduled to meet on May 10, 2023, to consider and approve the company’s audited consolidated and independent financial results for the year ending March 31, 2023, and to recommend a dividend, if any.
L&T is India’s largest Engineering & Construction (E&C) company interested in EPC projects, hi-tech manufacturing and services. The company operates in the infrastructure, heavy engineering, defence engineering, power, hydrocarbons, and services business segments.
As part of its five-year strategic plan ‘Lakshya 26’, the company is looking to divest its investments in non-core areas, which include road concessions and power businesses, and minimize its stake in Hyderabad Metro. According to the strategic plan, the company plans to focus on green energy, batteries and battery manufacturing, the development of data centres, technical education and B2B e-commerce in the coming years.
With its leadership in EPC (engineering, procurement and contracting) and diversified offerings, analysts believe the company will be a key beneficiary of the government’s push to revive infrastructure and private sector capital spending.
Additionally, rising infrastructure and hydrocarbon investments in the Gulf Cooperation Council (GCC) region will also offer opportunities for diversification.
In Q4FY23, L&T announced an EPC order inflow of Rs 20,000-31,500 crore (ex-services segment) across railways, hydrocarbons, power T&D, water treatment, heavy engineering, construction and factories and other areas, indicating strong order inflows during the quarter amid a challenging global environment.