Shares of Larsen & Toubro jumped 2 percent on Thursday, December 1, to record a new 52-week high after the company reported that it has successfully closed a three-year USD 107 million sustainability-linked loan from Sumitomo Mitsui Banking Corporation (SMBC).
During Thursday’s trade, the stock opened at a price of Rs. 2085.25 per share against the previous close of Rs. 2074.85 per share and grew further during the early trading session to touch a new 52-week high of Rs. 2110. It was trading at ₹2,101, up by 1.28 percent, at 13:45 p.m. on the NSE.
The stock touched its 52-week low of Rs. 1,456.35 on June 20, 2022, indicating that at the current level, the stock is trading over 44 percent above its 52-week low.
The stock has increased by over 28 percent in the last six months. Furthermore, in the past one year, it has shown a growth of nearly 12 percent. Along similar lines, the stock has delivered almost 73 percent returns in the last five years.
The EPC major Larsen & Toubro announced that it has closed a three-year $107 million sustainability-linked loan (SLL) from Sumitomo Mitsui Banking Corporation (SMBC) on 30th November 2022.
SMBC was appointed as the sole sustainability coordinator and lender for the said SLL facility, the official filing said.
This sustainability-linked loan underscores its continued commitment to its environmental, social and governance (ESG) goals, the company stated.
The facility incorporates interest rate reductions linked to the achievement of two of the company's predetermined sustainability targets, such as the reduction of greenhouse gas emission intensity and water consumption intensity against the target levels.
R Shankar Raman, Group CFO & whole time director of L&T, said L&T continues to focus on achieving Water Neutrality by 2035 and Carbon Neutrality by 2040. Our long-term strategic plan also clearly outlines the ESG roadmap towards this goal. This SLL transaction with SMBC is an important step in that journey and underlines our intent on the ESG front.
Dometic brokarage firm Sharekhan is bullish on Larsen and Toubro and has recommended a ‘buy’ rating on the stock with a target price of ₹2390, reported Moneycontrol.
L&T is the best proxy for domestic capex given its market leadership in the engineering and construction industry, diversified revenue stream and strengthening balance sheet, the brokerage report said.
Larsen & Toubro Ltd., established in 1946, is a large cap company with a market capitalization of ₹291,546.56 crore functioning in the construction industry. It is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services with its operations in over 50 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades, its website shows.
According to a Mintgenie poll, 36 analysts on average have a ‘STRONG BUY’ call on the stock.