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Larsen and Toubro Ltd.’s shares were up by 2.21 per cent after the company secured a contract in the Middle East for the Jafurah Unconventional Gas Field in Saudi Arabia, with an estimated value of USD 3.9 billion.
- Also Read: L&T set to bag mega deal from Aramco
With this order accumulation, ICICI Securities predicts that L&T could achieve a growth in order inflow exceeding 20 per cent in Q2, excluding services. The company has maintained its order inflow growth guidance of 15 per cent Year-over-Year for FY24. However, with the recent order wins included, ICICI Securities anticipates that L&T may surpass its earlier order inflow guidance.
Additionally, ICICI Securities highlights L&T’s commitment to rewarding minority shareholders through a significant buyback program announced in Q1FY24. This move is expected to result in an improvement of Return on Equity (RoE) by 200 basis points in the medium term.
Key risks highlighted in the report include the potential impact of fluctuations in crude oil prices on hydrocarbon capital expenditure and potential slowdowns in government capital expenditure due to upcoming general elections.
The shares were up by 2.21 per cent to ₹2190 at 12.27 pm on the BSE.
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