L&T Shares Will Remain In Focus On Monday On Securing Rs 1,040 Cr Contract For Kanaka Line

Larsen & Toubro (L&T) shares will remain on investors' watchlist on Monday after the company bagged a Rs 1,040 crore contract from Rail Infrastructure Development Company (Karnataka) Limited (KRIDE) according to a PTI report.

According to the report citing an official, on December 30 Larsen and Toubro received the Letter of Acceptance (LoA) for the design and construction of an elevated viaduct including associated works between Heelalige and Rajanukunte of Corridor-4 of the Bengaluru Suburban Rail project.

The contract period is 30 months and physical work of the project is expected to commence shortly, according to officials.

L&T shares closed 0.26% higher at Rs 3527.05 per share on Friday. At this price, the company has a market capitalization of Rs 4,95,832.09 crore. The stock has a 52 Wk High and 52 Wk High of 3,559.75 and 2,058.10 respectively.

In a statement, Karnataka's Rail Infrastructure Development Company (K-RIDE) said, "Larsen and Toubro has been issued the Letter of Acceptance today for the design and construction of elevated viaduct of length 8.960 km and At-Grade of length 37.920 km (excluding station buildings) including associated works between Heelalige and Rajanukunte, on EPC (Engineering, Procurement and Construction) mode, in Corridor-4 or 'Kanaka' line of Bengaluru Suburban Railway Project (BSRP)."

The share price of L&T traded on a new 52-week high value for two consecutive days on December 27 and December 28, at 3559.75 and 3550.00 respectively.

L&T emerged as the lowest bidder for the rail civil work tender in August 2023. However, KRIDE, responsible for executing the suburban rail project, could not issue the work order in view of the delay in the transfer of land from South Western Railway. In January 2023, K-RIDE invited bids for the civil engineering works of the Kanaka Line.

The Kanaka Line will include stations at Rajanakunte, Muddanahalli, Yelahanka (interchange), Jakkur, Hegde Nagar, Thanisandra, Hennur, Horamavu, Channasandra, Benniganahalli (interchange), Kaggadasapura, Doddanekundi, Marathahalli, Belandur Road, Carmelaram, Ambedkar Nagar, Huskur, Singena Agrahara (future), Bommasandra (future) and Heelalige.

Larsen & Toubro (L&T) share price performance:

In the last six months, the shares of Larsen & Toubro have gained 45.65% and they are up 16.71%. In the last one year, the share price of Larsen & Toubro has gained 67.11%. In this year so far, the stock has gained 68.86%. The last two years and three years' returns from the stock have increased 24.97%, and 51.72% respectively.

About Larsen & Toubro:

Larsen & Toubro is a USD 23 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services. The company operates in over 50 countries worldwide.

Larsen & Toubro Ltd Q2 results:

For the quarter ending September 30, 2023, Larsen & Toubro Ltd posted a 45% spike in consolidated net profit at Rs 3,223 crore, helped by strong demand in its mainstay infrastructure projects segment.

The infrastructure company's revenue from operations jumped 19% to Rs 51,024 crore in Q2FY24 compared to Rs 42,763 crore in the year-ago period.