L&T share price edges higher despite weak Indian stock market. Here’s why

Larsen & Toubro (L&T) share price rallied nearly 2% on Monday despite a weakness in the broader Indian stock market. L&T shares gained as much as 1.96% to ₹3,226.90 apiece on the BSE.

Gains in L&T stock price comes after the company announced that it won a large order for its Power Transmission & Distribution business.

“The Power Transmission & Distribution (PT&D) vertical of Larsen & Toubro has won new orders in India and abroad. In India, it has won an order to implement 765kV and 400kV transmission line segments associated with a Renewable Energy Zone in Uttar Pradesh,” Larsen & Toubro said in a regulatory filing on Monday.

Prior to this, the business secured an order for turnkey construction of a 400kV transmission line, meant for evacuation of power from a non-fossil fuel-based powerplant in southern India.

In Saudi Arabia, L&T’s PT&D vertical won an order for a 380kV Gas Insulated Substation (GIS). The scope also includes associated Reactors and installation of hybrid GIS Bays.

In Abu Dhabi, the business has received an order for setting up a new 220/33kV grid station, along with associated jobs, the engineering and construction major said.

“These repeat orders from PT&D’s longstanding customers underscore the vital role played by L&T towards setting up efficient grid infrastructure across geographies, and thereby facilitating faster proliferation of renewable energy generation,” the company statement added.

As per L&T’s project classification, a large order ranges from ₹2,500 crore to ₹5,000 crore.

L&T Stock Price Trend

L&T stock has remained under pressure this year as the shares have fallen 12.5% on a year-to-date (YTD) basis. Over the past six months, L&T share price has declined 13%, while it is down 12% in one year.

However, in the long-term, L&T share price has delivered decent returns to investors. L&T stock price has gained 50% in two years and has given multibagger returns of 171% in the past five years.

At 1:10 PM, L&T shares were trading 1.27% higher at ₹3,205.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.