L&T Construction bags order worth over Rs 7,000 cr for Mumbai-Ahmedabad high-speed rail project, stock hit record high

The National High-Speed Rail Corporation Limited (NHSRCL) has awarded the L&T Construction order, which is estimated to be more than Rs 7,000 crore, for the Mumbai Ahmedabad high-speed rail project.

According to an exchange filing on Friday, the company was awarded a contract by the National High-Speed Rail Corporation Ltd. to construct the 135.45 km stretch of the MAHSR-C3 package, which is part of the Mumbai-Ahmedabad high-speed rail project. 

The scope for the MAHSR – C3 package includes the construction of viaducts, stations, major river bridges, depots, tunnels, earth structures, stations, and other auxiliary works.

Although L&T has not specified the order value as per standard practice, the filing classifies orders which have a value in excess of Rs 7,000 crore as a "mega" order.

The 508-km Mumbai-Ahmedabad High-Speed Rail project, also called the MAHSR Bullet Train project, will cover 155.76 km stretch in Maharashtra, 4.3 km in Dadra & Nagar Haveli, and 348.04 km in Gujarat. It is scheduled to have 12 stations along the route. Upon completion, the High-Speed Rail will operate at a speed of 320 Kmph, covering the entire distance in approximately 2 hours with limited stops and in
3 hours with all stops.

“This is the second largest package that L&T has won in this prestigious MAHSR project, and we are humbled by the trust reposed in us by our client, NHSRCL. By deploying state-of-the-art construction methods and extensive digital technologies, we will endeavour to complete this project, leveraging the experience from other MAHSR packages that we are currently executing,” said S V Desai, Whole Time Director & Senior Executive Vice President (Civil Infrastructure). 

Following this, shares of Larsen & Toubro touched its all-time high of Rs 2,564 on Friday. At 11.45 am, the stock was trading at Rs 2,557.65, up by 2.75 per cent. 

The stock of L&T opened at Rs 2,523.4 and closed at Rs 2,489.6 on Thursday. Yesterday’s high was Rs 2,572.8, while the low was Rs 2,523.3. 

Its market capitalisation is Rs 3.60 lakh crore. The 52-week high for the stock is Rs 2573.35, and the 52-week low is Rs 2,371.55.

Besides, shares are being closely watched after the company announced on Thursday that it will hold a board meeting on July 25 to consider a buyback of equity shares and a special dividend for its shareholders.

The company board had earlier approved a Rs 9,000 crore share buyback in 2018, but the proposal was rejected by market regulator Sebi.