Shares in Larsen and Toubro rallied 10 per cent, as the company reported a solid set of numbers for the quarter ending March 31, 2016.
The stock was last trading at Rs 1419, up 10 per cent over the previous close. fourth quarter earnings beat analysts' expectations on all counts.
The infra major reported a net profit of Rs 2,454 crore compared to year-ago period, largely boosted by increase in sales and better operating efficiencies.
Revenues for the full year 2016 rose 11.55 percent to Rs 1,02,631.7 lakh crore against Rs 92,004.6 crore in preceding year and profit grew by 6.8 percent to Rs 5,090.5 crores.
The order book at the company also rose with the company having an order book position of Rs 2,49,949 crore as of March 2016, higher by 7 percent.
Analysts had largely expected the order book to swell, but, that was difficult given the slowing of orders from the Middle East. This is largely on account of a fall in crude prices, which has hit spending in countries of those regions.
Many brokerages upgraded the stock to a buy, including the likes of Citi. The stock of Larsen has been one of the big under performers of the last few quarters, as economic recovery has taken time to gather momentum.
This has led to large scale drop in the stock price of Larsen & Toubro from levels of Rs 1888 to Rs 1066.