L&T inching up steadily on winning big orders

Even as US markets attempt to reach all time highs and almost 34 out of 50 NIFTY stocks are trading above 200-DMA (Daily moving average), indicating bullishness in market, Larson & Toubro is making swift gains on reports of winning construction orders. 

L&T traded up by almost 1.54 per cent on Wednesday on an intra-day basis by gaining Rs. 22.70 per share at Rs. 1510 per share owing to an announcement made by the company that it has signed a contract to build a stadium for Qatar's 2022 World Cup.

L&T's construction arm along with its partner in JV, Al Balagh Trading & Contracting, has been contracted to build a 40,000 seater stadium which will be a part of the sports infrastructure being readied by the Emirates in preparation of the 2022 FIFA World Cup. The contract value for both the partners in JV is confirmed at US $ 360 million and is slated to be completed by 2019. L&T has won orders worth Rs. 2,161 crore across various business segments and the stock is reacting positively to all the new orders it is being able to generate.

L&T is also one amongst the bidders for the traction and power supply works for the Colaba-Bandra-SEEPZ Metro-3 corridor. Mumbai Metro Rail Corporation (MMRC) plans to complete the bid evaluation in around 60 days. 

L&T has underperformed the broader market while delivering negative returns to the tune of 10 per cent over 1 year period. Over a 6 month period the stock has gone up by almost 12 per cent. At Rs. 1510 per share, L&T is trading above its 200-DMA indicating bullishness in the scrip.