Rs 28 Dividend: Construction Co Wins Order From ONGC, Buy For TP Rs 4000: Motilal Oswal

Large cap construction sector company Larsen & Toubro Ltd shares jumped 1.85% in trade today on BSE after it won large offshore order from ONGC on June 13, 2024. Current market price of Larsen & Toubro shares on BSE is Rs 3691.45 per share on BSE with intraday jump of 1.71%. L&T share gained 5.85% in last 1-week and jumped over 56% in last 1-year. Earlier this year on May 8 the company declared a rally of 10% in consolidated net profit to Rs 4396 crore. The company's revenue from operations climbed 15% YoY to Rs 67,079 core. Board of L&T declared a final dividend of Rs 28/- per share of the face value of Rs 2/- each. Leading brokerage firm Motilal Oswal has recommended buy call to Larsen & Toubro shares with target price of Rs 4000 apiece. Check more details below:

Larsen & Toubro Bags Major Order From ONGC: As per the regulatory filing of Larsen & Toubro dated June 13, 2024, "the Hydrocarbon vertical (L&T Energy) of Larsen & Toubro (L&T) has secured an order from the Oil & Natural Gas Corporation (ONGC) for Daman Upside Development Project-Wellhead Platforms & Pipelines (DUDP-WP), off India's west coast. The scope of work includes engineering, procurement, construction, installation, and commissioning of four Wellhead Platforms, 140-km Pipeline and associated Topside modifications at Tapti Daman block at a Western offshore location."

Commenting on this, Mr Subramanian Sarma, Whole-time Director & President (Energy), L&T said: "This order demonstrates ONGC's confidence in L&T forged through execution of multiple complex offshore projects and also reinforces L&T's commitment to contribute towards India's energy security".

Larsen & Toubro Recommended Dividend: According to the Exchange filing of L&T issued as on May 8, 2024, "Board of Directors has recommended a Final Dividend of Rs.28/- per share of the face value Rs. 2/- each (in addition to the special dividend of Rs. 6 per share paid in August 2023) for the financial year ended March 31, 2024 (previous year final dividend Rs. 24/- per share). The Company will arrange to pay the proposed Final Dividend after approval of the shareholders in the ensuing Annual General Meeting."

Larsen & Toubro Record Date For Dividend: As per the BSE filing, "The Company has fixed Thursday, 20th June 2024 as the Record Date for determining the entitlement of Members for the proposed Final Dividend."

Larsen & Toubro Q4 Results: L&T recorded a rally of 15% in consolidated net sales to Rs 67,079 crore as against Rs 58, 335 crore declared in the corresponding quarter of last year. L&T announced its profit after tax (PAT) announced at Rs 4396 crore, up 10% as against Rs 3,621 crore in the corresponding quarter of last year. The company's FY 2024 consolidated net sales jumped 21% to Rs 2.21 lakh from Rs 1.83 lakh crore in the similar quarter of last year. For FY2024, L&T declared profit after tax came at Rs 13,059 crore, up 25% as against Rs 10,471 crore in FY 2023.

Also, L&T received orders worth Rs 3.02 lakh crore at group level for the year ended March 2024, up 31%. Global orders announced at Rs 1.63 lakh crore during the year and consisted 54% of the total order inflow with higher ordering momentum registered in GCC countries. Meanwhile, order inflow for the quarter ended March 2024 declared at Rs 72,150 crore, down 5% as against the corresponding quarter of the previous year. Domestic order inflow soared by 17% YoY.

Larsen & Toubro Share Performance: The 52-week high price of L&T share on BSE is Rs 3,948.60 per share (as on 03/06/2024) and 52-week low price is Rs 2340.00 per share (as on 14/06/2023), respectively. The company's market capitalisation stood at Rs 5,08,714.04 crore. The PE of Larsen & Toubro is 53.62 and ROE 14.44. Larsen & Toubro shares gained over 11% in last 1-year, offered return of over 8% in last 6-months, rallied 141% in last 2-years, and surged 145% in last 3-years. In last 10-years, Larsen & Toubro shares climbed 228%.

About: Larsen & Toubro is a USD 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.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.