Home Blogs L&T Hits Lifetime High on Likely Aramco Order Win
Monthly Newsletter

L&T Hits Lifetime High on Likely Aramco Order Win

Reading Time: 2 minutes

Major Deal Win Expected:

On the likelihood of receiving a roughly $4 billion order from Saudi Aramco, Larsen & Toubro (L&T) reached a lifetime high in Friday trade and crossed the Rs.4 Lakh crore market capitalization threshold.

This deal win is seen helping the engineering major clock in an over 20% growth in its order inflows in FY24, as against a guidance of 15%.

The order win from Saudi Aramco is reportedly for the second expansion phase of its Jafurah unconventional gas production project, and will be executed by L&T Energy Hydrocarbon. This division accounted for about a fifth of the company’s total order book of over ₹4 lakh crore as of the June quarter.

Stock Performance:

Source: Moneycontrol

What’s in Store for Larsen & Turbo:

L&T has announced order wins worth ₹15,000 crore so far in the current quarter; this comes on top of orders worth ₹66,000 crore in the June quarter. “Including the above mentioned orders, we expect order inflow for Q2 to be in a similar range,” said ICICI Securities, which expects the total order inflow for the company to be ₹2.2 lakh crore this year.

The brokerage has upgraded the rating for the shares to ‘buy’ from ‘add’ earlier, raising target price by more than 14% to ₹3,141.
Shares of L&T are up nearly 40% so far in 2023, also supported by the company’s first ever share buyback. The conglomerate will buy back shares at ₹3,000 a piece via the tender route.

Liked this story and want to continue receiving interesting content? Watchlist Basant Maheshwari Investing’s smallcases to receive exclusive and curated stories!

Explore BM Nifty Top 20 Smallcase here

Explore Now

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products.
Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary. For more information and disclosures, visit our disclosures page here

Basant Maheshwari Investing is a SEBI Registered (SEBI Registration No. INH100008513) Portfolio Management Service.

Office No. 701, 7th Floor, Plot – 211, Dalamal Tower, Free Press Journal Marg, Nariman Point, Mumbai – 400021

You may want to read

Your email address will not be published. Required fields are marked *

L&T Hits Lifetime High on Likely Aramco Order Win
Share via Whatsapp