L&T Construction has bagged a Rs 3,191 crore order from Dhaka Mass Transit Company for construction of a railway line for Dhaka Metro. L&T has secured the order in JV with Marubeni Corporation (Japan) through an international competitive bidding process. The railways strategic business group of L&T Construction’s transportation infrastructure business has won a major design and build order from the Dhaka Mass Transit Company (DMTC) worth Rs 3,191 crore for electrical and mechanical systems package of Dhaka Mass Rapid Transit Development Project (MRT – line 6)
Why is this important
As per filings made with BSE, L&T has bagged orders more than Rs. 20,000 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. 1340, M Cap Rs. 1,87,844 Cr, EV/Ebitda 13.7x FY20E).