Shares of Larsen and Toubro (L&T) continued gaining streak for the fourth straight session on Wednesday, with the share price rising 3.5% in intraday trade on the BSE after the engineering and construction major said it won contracts worth over ₹7,000 crore for its hydrocarbon business. The index heavyweight has gained as much as 5.4% in the last four sessions as compared to 3.4% rise in the BSE benchmark Sensex during the same period.
Early today, L&T shares opened marginally lower at ₹2,161.10 against the previous closing price of ₹2,170.95 on the BSE. Extending opening gains, the largecap stock surged 3.52% to hit an intraday high of ₹2,247.40, while the market capitalisation climbed to ₹3.13 lakh crore.
L&T shares traded near their 52-week high levels of ₹2,297.30 touched on January 20, 2023, while the share price hit a 52-week low of ₹1,456.80 on June 20, 2022. The blue chip stock has risen nearly 22% in the last one year and 17% in the past six months. In the calendar year 2023, the counter added 7%, while it gained 4% in a month.
L&T shares witnessed a surge in buying activities today after the multinational conglomerate informed exchanges that its hydrocarbon business, L&T Energy Hydrocarbon (LTEH), has recently secured a “mega” order from a client in the Middle East. Mega orders are worth more than ₹7,000 crore, as per the project classification given by L&T.
The scope of work comprises engineering, procurement, construction & installation for various new offshore facilities and integration with existing installations, the company said in the BSE filing today.
Subramanian Sarma, Whole-Time Director and Senior Executive Vice President, said, “LTEH Offshore has consistently demonstrated timely project delivery deploying end-to-end capabilities, including design, fabrication, and installation of large process platforms, living quarters, subsea systems, piping and other T&I works. Securing these repeat orders indicate customer satisfaction and is a testimony to customer’s faith in the team's dedicated efforts towards developing and nurturing these capabilities.”
As per the company, the business is executing several domestic and international offshore projects and is committed to building its regional presence in geographies that it operates in, by nurturing local skills & talent, and enhancing engagement with local vendors and contractors.
LTEH offers integrated design-to-build solutions across the hydrocarbon sector globally. Backed by over three decades of rich experience and extensive capabilities across the value chain, the business has been setting global benchmarks in all aspects of project management, corporate governance, quality, health safety environment (HSE) and operational excellence, L&T said.
Earlier in December last year, LTEH had secured two orders for its Asset Management and AdVENT business verticals. Larsen & Toubro Energy Hydrocarbon - Asset Management (LTEH-AM), a new business vertical for Operations and Maintenance (O&M) and associated services, secured its first integrated O&M contract from Vedanta Limited, Cairn Oil & Gas division.