Larsen and Toubro’s subsidiary L&T construction has won orders worth Rs. 4,033 crore in the domestic market. The company has secured orders from government for the design and construction of 1125 residential towers of G+3 floors in various districts in Andhra Pradesh. It has also won another order from a cement manufacturer for the construction of cement plants in Odisha and Andhra Pradesh on design and build model. The company has also bagged a turnkey order from govt. client in Patna (Bihar) to establish a cancer institute along with the supply, installation and commissioning of medical equipment.
Why this is important
As per filings made with BSE, L&T has bagged orders more than Rs. 15,000 crore including the said orders during this quarter. Order book of L&T stands strengthened with back to back orders.
How will the stock be impacted
Considering L&T’s capabilities in executing huge contracts, bagging of above orders is expected to improve the revenue visibility of Larsen & Toubro (CMP Rs. 1326, M Cap Rs. 1,85,980 Cr, EV/Ebitda 13.7x FY20E).