Larsen & Toubro trades higher for fourth straight day; stock surges 7%

L&T said its construction arm secured large orders from prestigious clients for its various businesses.

Shares of Larsen & Toubro (L&T) were trading higher for the fourth straight day on Tuesday. The stock jumped 7 per cent to Rs 968.25 in intra-day deal on the BSE after the company bagged large contracts worth more than Rs 2,500 crore.

At 01:38 pm, L&T was the top gainer among 30-share S&P BSE Sensex, as compared to a 1 per cent rise in the benchmark index. In the past four trading days, the stock has rallied 9.5 per cent from Rs 884.55 on June 17.

The construction arm of L&T has secured orders from prestigious clients for its various businesses. Although L&T did not mention the exact value of the contract, according to its project classification, the value of a 'large' order ranges in the range of Rs 2,500 to Rs 5,000 crore.

L&T Construction secured an engineering, procurement and construction (EPC) contract for its transportation infrastructure business, to construct Packages 11 and 22 of the Delhi-Vadodara Expressway, L&T said in a press release on Tuesday.

When completed, the Delhi-Vadodara Expressway will be the country's longest expressway under the National Highways Authority of India's (NHAI) Bharat Mala programme, it said.

The company also secured an EPC contract from the state government for the reconstruction of the four-lane Tallah road overbridge in West Bengal.

On Monday, in a separate press release, L&T said it has inked pact with KBR to build modular process plants for refinery and petrochemical projects. The memorandum of understanding (MoU) has been signed by L&T arm L&T Hydrocarbon Engineering.

Meanwhile, according to a Business Standard report, if Shanghai Tunnel Engineering Company is unable to win the Delhi-Meerut Regional Rapid Transit System (RRTS) contract owing to the border conflict, then it could be L&T’s gain as the latter is the second preferred bidder for the project. CLICK HERE TO READ FULL REPORT.