L&T, the Maker Of Ram Mandir In Ayodhya, Becomes Multibagger In Over 3 Years, Gains 225%

Indian citizens are eagerly waiting to visit the birthplace of Rama, a principal deity of Hinduism. And their wait is finally about to be over on January 22, as Prime Minister Narendra Modi will be inaugurating the much-awaited and desired Ram Mandir in Ayodhya. The 3-floor temple is still under construction, with the first and second floors expected to be completed by 2024-end. Nevertheless, the new year comes with enthusiasm and light for Indians as the state-of-the-art Ram Temple will be inaugurated this month. But did you know, that the maker of Ram Mandir, has already seen multibagging performance on BSE and NSE?

Yes, if you are not aware, then take note, infrastructure giant Larsen & Toubro (L&T) is the maker of Ram Mandir assisted by other companies. Since the time L&T got this important job of overseeing the construction of Ram Mandir, its stock price on stock exchanges has zoomed and emerged as a multi-bagger in more than three years.

As per the creator of Ram Mandir, Shri Ram Janmabhoomi Teerth Kshetra's website, on February 6, 2021, it announced that Larsen & Toubro and Tata Consultancy Engineers were appointed as Design & Build contractor and project manager consultant for the construction of Shri Ram Temple.

The Trust revealed that the agreement with L&T was signed on November 16, 2020.

Since then, L&T has been the lead constructor of Ram Mandir while assisted by Tata Construction Engineers. As per Wikipedia, L&T offered to oversee the design and construction of the temple free of cost and became the contractor of the project. Meanwhile, the Central Building Research Institute, the National Geophysical Research Institute and the Bombay, Guwahati and Madras IITs are assisting in areas such as soil testing, concrete and design.

Since the date of the agreement for building Ram Mandir, L&T shares have emerged as a multi-bagger. On November 17, 2020, the stock price of L&T stood at Rs 1,080.90 apiece.

L&T shares have recorded a significant jump on exchanges. It touched a new record high of Rs 3,559.95 apiece on December 28, 2023.

In January 2024, L&T shares are in focus ahead of the inauguration of Ram Mandir. On January 5, 2024, the stock price ended at Rs 3,515.05 apiece, up by 1.62% on BSE with a market cap of Rs 3515.05 crore. Notably, the current market price level is near its 1-year high.

From November 17, 2020, to date, L&T's share price has skyrocketed by a breathtaking 225.19%.

Also, in 2023, L&T was among the top three gainers in market capitalisation under the large-cap basket. As per Geojit's data, L&T's market cap surged by 31% in H2, totalling Rs 4,09,899 crore by the end of December 2023. In a year, the m-cap surged by 51.6%.

L&T's m-cap has been rising consistently, shifting the company's rank to 12th position by the end of 2023, compared to 14th rank by the end of June 2023 period, 19th rank by December 2022 period. While L&T was at 20th rank in the most valued list by the end of December 2020.

Overall, the temple is still under construction and supervised by the Shri Ram Janmabhoomi Teerth Kshetra Trust. The state-of-the-art of the temple will be inaugurated on January 22.

The Main Temple of Ram Mandir has a total area of 2.7 acres, with a length being 360 feet and a width of 235 feet. The total height of the temple including the peak is 161 feet. There will be three floors to the Ram temple, with the ground and first floor holding 160 columns and 132 columns respectively, and the second floor has 74 columns. There are 5 pedks and pavilions and 12 gates in the temple.

The first and second floor of Ram Mandir is expected to be completed by December 2024-end.

In the second quarter of FY24, L&T recorded consolidated revenue of Rs 51,024 crore, recording a y-o-y growth of 19%, primarily aided by improved execution of the large order book and accelerated progress in the Projects and Manufacturing portfolio. International revenues during the quarter at Rs 21,898 crore constituted 43% of the total revenue.

Further, in Q2FY24, PAT stood at Rs 3,223 crore, registering a significant growth of 45% compared to the corresponding quarter of the previous year. In the quarter, L&T orders worth ₹ 89,153 crore at the group level, recording a robust growth of 72% on a y-o-y basis.

During the second quarter, orders were received across diverse segments like Onshore verticals of the Hydrocarbon business, Urban Transit systems, Transmission and distribution as well as Residential and Commercial Space. International orders at Rs 59,687 crore during the quarter comprised 67% of the total order inflow.

Larsen & Toubro is a $23 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.

L&T is still recommended to buy! As per Trendlyne data, the consensus recommendation from 31 analysts for Larsen & Toubro is BUY. EPS is expected to grow by 32.0% in FY24. Technically, the stock's weekly average delivery volume is 58.09%, while it is trading above 8 out of 8 SMAs, and above 6 out of 9 Oscillators in the bullish zone. The stock's RSI and MFI are at 65 and 47.7, which is steady as these two indicators below 30 are considered to be oversold and above 70 are referred to as overbought.