L&T shares hit one-year high as construction arm bags 'significant' order

Shares of Larsen & Toubro (L&T) rose 2.25 per cent in Tuesday's trade to hit scale their one-year high of Rs 3,579. Today's upward move in the share price came after the company said its construction arm (L&T Construction) has secured a 'significant' order from HITES (A Mini Ratna PSU) under the Ministry of Health and Family Welfare.

"The Health Business Unit of the HRC SBG has secured an order to construct a new AIIMS at Rewari (Haryana) on a Design, Engineering, Procurement and Construction (EPC) basis in Q3 FY24.The facilities will include a 720-bed Teaching Hospital, a 30-bed AYUSH Hospital, an 100 students' annual intake Medical College, Nursing College, 500-seat Auditorium, Hostel & Residential facilities to be executed within stringent timelines. The total built up area is 1.5 Mn Sq. ft," L&T stated.

"The scope of work involves Civil structure, Finishes & allied MEP services including built in Furniture, Supply, Installation, Testing & commissioning of Medical Gas Piping, Modular OT, Pneumatic Tube System, Nurse Call System, Central Sterile Supply Department & external development works including landscaping," it added.

In terms of valuations, L&T's project classification of a significant order is between Rs 1,000 crore and Rs 2,500 crore.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 67.97. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 51.56 against a price-to-book (P/B) value of 8.11.

On BSE, 29,000 shares were seen changing hands today. The figure was lower than the two-week average volume of 65,000 shares. Turnover on the counter came at Rs 10.31 crore, commanding a market capitalisation (m-cap) of Rs 4,90,603.78 crore.

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