VALUE PICK AUGUST ’17: LARSEN & TOUBRO LIMITED, Update

Update

“Win Contract for Water & Effluent Treatment Business”

 

The Water & Effluent Treatment business of L&T Construction (arm of Larsen & Toubro Ltd) has secured a repeat order from the Department of Water Resources (Government of Odisha) to execute a “Pressurized Underground Pipeline Irrigation Network System” for the Right Command of Lower Suktel Irrigation Project.

The project involves Survey, Design, Engineering, Supply, Laying, Installation, and Commissioning of MS, DI & HDPE pumping main & distribution network with all allied electromechanical & automation works.

The project envisages providing water to irrigate 27,000 Ha of Culturable Command Area (CCA) in the Balangir district of Odisha.

Larsen & Toubro Limited closed at INR 1959 (UP 0.26%) today on the NSE with a volume of 15,66,565 shares.

 

Also Read: Value Pick Stock (September 2022) Can Fin Homes Ltd

 

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01 August 2017

Company Background –

History –

Larsen & Toubro Limited was incorporated in the year 1946 as a private limited company. Earlier, the company was established as a partnership firm founded by two Danish engineers Henning Holk Larsen with Soren Kristian Toubro in Mumbai. In December 1950, the company became a Public Company with a paid-up capital of Rs.2 million.

Business –

• Larsen & Toubro Limited (L&T) is a technology, engineering, construction, and manufacturing company. The company is one of the largest and most respected companies in IIndia’sprivate sector. The company operates in three segments (1) Engineering & Construction Segment, (2) Electrical & Electronics segment, (3) Machinery & Industrial Products and others.
• The company’s Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines.
• The company’s Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design.
• The company’s heavy engineering division is organized into two independent companies: (1) Heavy Engineering Independent Company and (2) Ship Building Independent Company.
• The company’s Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business.

International Presence –

L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The companys businesses are supported by a wide marketing and distribution
network, and have established a reputation for strong customer support.

Awards & Recognition –

The company received a host of awards, medals and trophies for their continuous efforts.

• They received Environmental Excellence Gold award from Greentech Foundation during the years 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports.
• The Ministry of Power conferred the first prize in National Energy Conservation for the year 2005.
• During the year 2006-07, A Wall Street Journal survey featured L & T among Asias Most Admired Companies and ranked the company No.1 for the quality of products and for overall reputation.
• In 2015 L&T Won Golden Peacock Award for Risk Management, Award for Excellence in Power Project Execution from the Central Board and Good Corporate Citizen Award.

Listed On –

The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.

Stock Information –

Share Holding Pattern –

Larsen & Toubro Limited – Financials

Conclusion –

Considering the techno-funda analysis and sector outlook; Larsen & Toubro Limited looks good at Rs 1175. FinBlab recommends investing in a stock keeping a long-term view in mind.

Click here to see what other brokerage houses said about L&T.

 

Here is a snapshot of the previous value pick. Click Geecee Ventures, Sanghvi Movers, Swelect Energy, Glenmark Pharma to see the analysis.

 

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