Synopsis: Larsen & Toubro has won a large order for its Heavy Civil Infrastructure business to build India’s biggest pumped storage power project in Maharashtra. The project will be executed for Torrent Energy Storage Solutions and is expected to play an important role in improving power supply stability in the state.
The shares of this engineering company majorly engaged in providing engineering, procurement and construction solutions across various sectors, were in focus after securing a large contract from Torrent Energy Storage Solutions for a pumped energy storage project.
With the market capitalization of Rs. 5.3 Lakh Crores, the shares of Larsen & Toubro Ltd were trading at around Rs.3878, which is 7 percent discount from its 52-week high of Rs. 4195 and is trading at a P/E of 33.2 whereas industry P/E stands at 17.6
What is the NEWS:
Larsen & Toubro Ltd has recently informed the stock exchanges that it has received a large order worth between Rs. 2500 Crore and Rs. 5000 Crore from Torrent Energy Storage Solutions Pvt Ltd for its Heavy Civil Infrastructure business to build India’s biggest pumped storage power project in Raigad, Maharashtra.
The order is for 3,000 MW Saidongar-1 Pumped Storage Project, which will have ten units of 300 MW each. L&T’s scope of work covers the complete civil construction along with all related hydro-mechanical works, starting from design and engineering to final execution.
Pumped storage projects like this store excess power when demand is low and release it during peak hours, helping balance the electricity grid. Once completed, this project is expected to strengthen grid reliability, support energy security for Maharashtra and nearby regions, and contribute to India’s long-term clean energy goals.
About the Company and Financials:
Larsen & Toubro Ltd is a multinational conglomerate which is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence, Information Technology and Financial Services in domestic and international markets. The company’s order inflow as of Q2 FY25 amounts to Rs. 1.15 lakh Crore, up 45 percent YoY and Total order book increased to Rs. 6.67 lakh Crore, up 31 percent YoY.
Out of the total order book, 59 percent is contributed by the Infrastructure segment whereas Energy and Hi-Tech Manufacturing contributed 32 percent and 6 percent respectively and 51 percent of the orders comes from India whereas 41 percent comes from Middle East and remaining 8 percent comes from rest of the world.
Year on Year analysis: Revenue from operations has increased from Rs. 61,555 Crores to Rs. 67,984 Crores, up 10.4 percent. Operating profit has increased from Rs. 7917 Crores to Rs. 8513 Crores, up 7.5 percent and Net profit has increased from Rs 4099 Crores to Rs. 4678 Crores, up 14 percent.
Quarter on quarter analysis: Revenue from operations has increased from Rs. 63,679 Crores to Rs. 67,984 Crores, up 6.7 percent. Operating profit has increased from Rs. 8024 Crores to Rs. 8513 Crores, up 6 percent and Net profit has increased from Rs 4318 Crores to Rs. 4678 Crores, up 8.3 percent.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Large cap stock in focus after securing ₹5,000 Cr order from Torrent Energy Storage Solutions appeared first on Trade Brains.