Shares of Larsen & Toubro Ltd set a new 52-week high record on Wednesday's trading session after the company's arm bagged 'mega' orders from ArcelorMittal Nippon Steel India.
A 'mega' order, according to the company, is one with a value greater than 7,000 crore rupees.
According to company's exchange filing, the minerals & metals business of L&T Construction secured various orders in the iron & steel and beneficiation sectors from ArcelorMittal Nippon Steel India – a joint venture between the two global steel giants – to carry-out their expansion plans in Gujarat and Odisha.
The stock has gained 45.81% from 52-week low of 1,456.4 from June 20, and weekly average delivery volume is 68.71%. However, stock price underperformed its sector by 0.94% in the past year.
Analysts believe that in today's trading session, a strong surge in Siemens have triggered momentum in capital goods stocks.
They said that Larsen & Toubro as well is up more than 1.5% showing positive momentum, further extension towards 2,200 level can be expected with 2,080 level as the immediate support.
According to brokerage house, ICICI Securities Ltd, the order inflow momentum is likely to continue for the company.
"As of September-ended quarter, Larsen & Toubro's management estimated order prospects of 6.3 trillion rupees for H2FY23, which we believe would enable 12-15% growth in consolidated order inflow and revenues for FY23E. We expect this momentum to continue at least until FY24E end, up to the general elections," said the brokerage in its report.
The brokerage remains positive on Larsen & Toubro, and retains 'Add' rating.
"However given the recent runup in stock price (26% in 6 months), we retain our 'ADD' rating and SoTP-based target price of 2,262 rupees.
According to Mintgenie poll, 36 analysts recommend 'strong buy' for the stock.