Why L&T Shares Have Surged 19% Since Nov 9

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Why L&T Shares Have Surged 19% Since Nov 9
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Shares of construction and engineering giant Larsen and Toubro (L&T (NS: LART )) have surged almost 20% since November 9 this month. The stock is currently trading at Rs. 1,151.3 on November 19. This is a sharp turn from October 29, when its stock fell almost 5% after it reported a 45% decline in net profit (year-on-year) to Rs. 1,410 crore for the quarter ended September 30, 2020.

The company has bagged three major orders since then to send its stock up. L&T was the lowest bidder for an Rs. 3,200 crore four-lane road bridge across river Brahmaputra from Dhubri to Phulbari on NH 127 B. Japan International Cooperation Agency (JICA) is financing this project.

The second project that L&T bagged was the largest one ever by its construction and mining equipment arm: It will supply 46 units of Komatsu Mining Equipment to Tata Steel (NS: TISC ). This order includes the supply of the equipment and a complete maintenance contract. These units will be used at Tata Steel's Iron Ore Mines in Odisha and its West Bokaro Coal Mines in Jharkhand.

The third and most recent order was the mega-contract from National High-Speed Rail Corporation Limited (NHSRCL) for the famous Bullet Train project. The transportation infrastructure business of L&T Construction will build 87.569 km of this project. The official names of the Bullet Train project are Mumbai-Ahmedabad High-Speed Rail (MAHSR) project. A mega-contract according to L&T is a contract worth over Rs. 7,000 crore.

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  • Amrit Khanna @Amrit Khanna
    Atlast there is some movement in the L&T Stock!!
    Like 7

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