• By Vaamanaa Sethi
  • Sat, 09 Sep 2023 10:53 AM (IST)
  • Source:JND
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Engineering and construction giant Larsen and Toubro (L&T) shares hit a lifetime high on Friday’s trading session, leading the market capitalization crossing Rs 4 lakh crore after it bagged a $4 billion order from Saudi Aramco.

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This deal win will help the engineering major clock in over 20% growth in its order inflows in FY24, as against a guidance of 15%. Among other leading gainers on Nifty50, the shares of L&T rose 2% higher at Rs 2,901.60 on Friday.

MEED, formerly Middle East Economic Digest, reported that L&T has bagged two engineering, procurement, and construction (EPC) orders as part of Saudi Aramco's second expansion phase of its Jafurah unconventional gas production project.

As per media reports, L&T has been tasked with setting up a gas processing plant and its main process units, and will construct gas compression units, as part of the Jafurah unconventional gas production project.

"The biggest opportunity for L&T in the rest of FY24 is Middle East (ME) hydrocarbons, which should address market concerns of much expected slowdown in government orders in 4QFY24 ahead of elections," CLSA Asia Pacific Markets said in a note.

"By the time orders are placed and EPS gets visible, we expect the stock to re-rate," it said, raising the target price for the share by over 5% to ₹3,240.

In this quarter so far, L&T has announced order wins worth ₹15,000 crore, which comes on top of orders worth ₹66,000 crore in the June quarter. "Including the above-mentioned orders, we expect order inflow for Q2 to be in a similar range," said ICICI Securities. It further expects  the total order inflow for the company to be ₹2.2 lakh crore this year.

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Shares of L&T have surged nearly 40% so far in 2023, supported by the company's first ever share buyback. The conglomerate will buy back shares at ₹3,000 a piece via the tender route.