L&T slumps despite fresh order flow

L&T slumps despite fresh order flow

Larsen & Toubro slumped 3.17% to Rs 3515.50 at 12:38 IST on BSE, even as the company said its construction division has bagged an order worth Rs 1,107 crore form Steel Authority of India for its IISCO Steel Plant at Burnpur, West Bengal.

The company made this announcement during trading hours today, 8 February 2008.

Meanwhile, BSE Sensex was down 96.51 points or 0.55% to 17,430.42.

On BSE, 1.33 lakh shares were traded in the counter. The scrip had an average daily volume of 2.09 lakh shares in the past one quarter.

The stock hit a high of Rs 3665 and a low of Rs 3500 so far during the day. The stock had a 52-week high of Rs 4670 on 1 November 2007 and a 52-week low of Rs 1374.90 on 5 March 2007.

The large-cap scrip had underperformed the market over the past one month till 7 February 2008, declining 16.15% compared to the Sensex’s decline of 16.02%. It had also underperformed the market in the past one quarter, declining 12.07% compared to Sensex’s decline of 7.30%.

The company’s current equity is Rs 58.43 crore. Face value per share is Rs 2.

The current price of Rs 3515.50 discounts its Q3 December 2007 annualized EPS of Rs 66.03, by a PE multiple of 53.24.

On 24 January 2008, Larsen & Toubro (L&T) bagged orders worth Rs 1057 crore from the Gulf region.

On 21 January 2008, L&T’s engineering division bagged an export order worth Rs 1695 crore for manufacturing and supplying 22 hydrocracker & atmospheric residue desulphurisation reactors.

On 26 December 2007, L&T’s subsidiary L&T Oman LLC secured an order worth $110.37 million from Muscat Golf Course Project LLC.

On 19 November 2007, the company secured a contract worth Rs 275 crore from Delhi Metro Railway Corporation in consortium with Shanghai Urban Construction.

L&T’s net profit rose 40.1% to Rs 481.79 crore on 55.1% growth in net sales to Rs 6382.68 crore in Q3 December 2007 over Q3 December 2006.

The company manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys.