L&T Hits Lifetime High on Likely Aramco Order Win

Reading Time: 2 minutes

Major Deal Win Expected:

On the likelihood of receiving a roughly $4 billion order from Saudi Aramco, Larsen & Toubro (L&T) reached a lifetime high in Friday trade and crossed the Rs.4 Lakh crore market capitalization threshold.

This deal win is seen helping the engineering major clock in an over 20% growth in its order inflows in FY24, as against a guidance of 15%.

The order win from Saudi Aramco is reportedly for the second expansion phase of its Jafurah unconventional gas production project, and will be executed by L&T Energy Hydrocarbon. This division accounted for about a fifth of the company’s total order book of over ₹4 lakh crore as of the June quarter.

Stock Performance:

What’s in Store for Larsen & Turbo:

L&T has announced order wins worth ₹15,000 crore so far in the current quarter; this comes on top of orders worth ₹66,000 crore in the June quarter. “Including the above mentioned orders, we expect order inflow for Q2 to be in a similar range,” said ICICI Securities, which expects the total order inflow for the company to be ₹2.2 lakh crore this year.

The brokerage has upgraded the rating for the shares to ‘buy’ from ‘add’ earlier, raising target price by more than 14% to ₹3,141.
Shares of L&T are up nearly 40% so far in 2023, also supported by the company’s first ever share buyback. The conglomerate will buy back shares at ₹3,000 a piece via the tender route.

Liked this story and want to continue receiving interesting content? Watchlist Basant Maheshwari Investing’s smallcases to receive exclusive and curated stories!

Explore BM Nifty Top 20 Smallcase here

Explore Now

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products.
Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary. For more information and disclosures, visit our disclosures page here

Basant Maheshwari Investing is a SEBI Registered (SEBI Registration No. INH100008513) Portfolio Management Service.

Office No. 701, 7th Floor, Plot – 211, Dalamal Tower, Free Press Journal Marg, Nariman Point, Mumbai – 400021

Aditya Manekar

Chartered Accountant and Key Account Manager at smallcase - The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Smallcase Technologies Private Limited does not uphold nor promote any of the views / opinions.

Cancel reply

Dislaimer: This platform is intended for informational purposes only and is not intended to provide investment advice. The stock prices displayed are delayed and may not reflect the most current market conditions. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. You can also consider consulting a financial advisor before making any investment decisions. Smallcase Technologies Private Limited shall not be responsible for any losses that may occur as a result of using this platform.

The views expressed in this article are those of the author and do not necessarily reflect the views of Smallcase Technologies Private Limited (STPL) or any of its associates. The information provided in this article is for educational and informational purposes only. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investors should understand that his/her investment decision is based on personal investment needs and risk tolerance, and performance information available on here is one amongst many other things that should be considered while making an investment decision. Past performance does not guarantee future returns.

Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or scurities quoted (if any) are for illustration only and are not recommendatory.

The content and data available on the website, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk. Data used for calculation of live returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here.

The user agrees to assume complete and full responsibility for the outcomes of all of his/her investment decisions that he/she makes, including any direct, indirect, incidental, consequential, special, punitive or any other losses/damages if any that may be incurred by him/her. Smallcase Technologies shall not be responsible or liable for any direct, indirect, incidental, consequential, special, punitive or any other losses/damages arising out of the recipient's investments. For disclosures related to Smallcase Technologies Pvt Ltd, please visit this page .

All smallcases present in the articles are created by SEBI licensed entities. The disclosure of these entities can be found below: