L&T arm secures ultra mega order from NTPC; stock down

Larsen & Toubro Ltd (L&T) on Tuesday said its business vertical, L&T Energy CarbonLite Solutions, secured an ultra mega order from NTPC Ltd for setting up thermal power plants in Madhya Pradesh and Bihar. In terms of valuations, L&T's project classification of an ultra mega order is more than Rs 15,000.

"L&T Energy CarbonLite Solutions has secured 'Limited Notice to Proceed' (LNTP) from NTPC Ltd for setting up thermal power plants in Madhya Pradesh and Bihar. The orders pertain to main plant packages of 2x800 MW Stage-II thermal power plant at Gadarwara in Madhya Pradesh and 3x800 MW Stage-II thermal power plant at Nabinagar in Bihar," the company stated.

"The scope of work involves design, engineering, manufacturing, supply, erection and commissioning of boilers, turbines, electrostatic precipitators (ESP), auxiliaries, along with the related mechanical, electrical, instrumentation and civil works," L&T also said.

Subramanian Sarma, Whole-time Director & President (Energy) – L&T, said, "We deeply value the trust our clients place in us and are committed to achieving excellence. We look forward to ensuring delivering the projects with exceptional outcomes that meet our high standards of execution within a strict timeline."

On the stock-specific front, L&T shares shed 0.04 per cent to trade at Rs 3,626. Around 21,000 shares changed hands on BSE today. The figure was lower than the two-week average volume of 2.95 lakh shares. Turnover on the counter came at Rs 7.46 crore, commanding a market capitalisation (m-cap) of Rs 4,98,573.15 crore.

The counter traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 55.84. A level below 30 is defined as oversold while a value above 70 is considered overbought.

According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 51.10 against a price-to-book (P/B) value of 7.56. Earnings per share (EPS) stood at 70.96 with a return on equity (RoE) of 14.79.

L&T Energy CarbonLite is positioned to combine rich and diverse strands of experience in engineering, manufacturing and project execution with a strong focus on providing solutions for power and low carbon processes.