L&T builds on new order win

Larsen & Toubro rose 0.72% Rs 4275 at 12:03 IST on BSE, on securing two major contracts from Cairn India for the construction of civil works and the consolidated construction works of Cairn's project located near Barmer in Rajasthan.

The company made this announcement during trading hours today, 7 January 2008.

Meanwhile, BSE Sensex was up 114.47 points or 0.55% to 20,801.36.

On BSE, 1.07 lakh shares were traded in the counter. The stock had an average daily volume of 2.98 lakh shares in the past one quarter.

The stock hit a high of Rs 4292 and a low of Rs 4190.20 so far during the day. The stock hit a 52-week high of Rs 4670 on 1 November 2007 and a low of Rs 1374.90 on 5 March 2007.

The large-cap scrip had underperformed the market over the past one month till 4 January 2008, declining 1.26% as compared to the Sensex's return of 4.50%. It had outperformed the market in the past one quarter, rising 37.39% as compared to the Sensex's rise of 16.39%.

The company's current equity is Rs 58.37. Face value per share is Rs 2.

The current price of Rs 4275 discounts Q2 September 2007 annualized EPS of Rs 57.49 by a PE multiple of 74.36.

The project comprises development of infrastructure facilities, the construction of 18 well pad structures, detailed engineering and construction of all civil and electromechanical works at the Mangala and Raageshwari fields in Rajasthan. The project is to be executed within 18 months.

On 26 December 2007, L&T's subsidiary L&T Oman LLC secured an order worth $110.37 million from Muscat Golf Course Project LLC.

On 19 November 2007, the company secured a contract worth Rs 275 crore from Delhi Metro Railway Corporation in consortium with Shanghai Urban Construction.

On 15 November 2007, L&T in consortium with Paul Wurth won an order worth Rs 580 crore from state-run Steel Authority of India to rebuild one of its blast furnaces.

L&T's net profit rose 73% to Rs 348.02 crore on 47.4% growth in net sales to Rs 5499.94 crore in Q2 September 2007 over Q2 September 2006.

The company manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys.