Larsen Toubro gains 1% as construction arm wins orders worth Rs 3,572 crore
Share price of Larsen & Toubro (L&T) gained more than 1 percent in the early trade Monday on the back of orders win worth Rs 3,572 crore.
The construction arm of L&T has won orders worth Rs 3,572 crore across various business segments.
The company’s transportation infrastructure business has been awarded a prestigious contract worth Rs 1,358 crore on EPC basis from Bangalore International Airport.
The metallurgical and material handling segment has bagged orders worth Rs 1,264 crore from JSW Steel to build India’s largest blast furnace and steel melt shop.
The power transmission and distribution business won orders worth Rs 595 crore in the international market and building & factories business has bagged orders worth Rs 355 crore.
According to JPMorgan Schneider could buy electrical and automation unit of L&T for USD 2 billion.
The price implies valuation of 15x current year EBITDA, which looks reasonable as it reflects longer term growth opportunity in India, it added.
The deal in-line with Schneider’s policy to focus on smaller/mid-sized acquisitions.
At 09:30 hrs Larsen & Toubro was quoting at Rs 1,224.45, up Rs 8.15, or 0.67 percent on the BSE.
Posted by Rakesh Patil