Larson & Tourbo Grabs Orders Worth Rs 1504 crore

Its power business has bagged two different orders totalling Rs 1071 crore. The first one is from Tamil Nadu Transmission Corporotion for the supply, erection, testing and commisioning  of 400KV double circuit quad line of 274 km in Tamil Nadu. The duration of this project is one and a half years. The second order is for from Purvanchal Vidyut Vitran Nigam for electrification work in Jaunpur district in Uttar Pradesh. Apart from these, its 'Building and Factories' business vertical has received orders worth Rs 433 crore from its various ongoing projects.

The overall orders reported by L&T since the beginning of Q1FY14 is Rs 45856.14 crore. With this, L&T has a total order book of around Rs 2 lakh crore and has an order book to sales ratio of 3.25x, which looks reasonable considering the current slowdown in the economy.

The highest order that the company has recieved this fiscal is of Rs 8250 crore from ArRiyadh Development Authority for the design, construction and commissioning of its metro project in Riyadh, Saudi Arabia.

The stock has lost 32% of its value this year due to the slower pace of economic growth. The long term future of the company however looks good. One must thus have this stock on their porftolio.