L&T shares rally 2.5% as it bags mega contract of India’s first high-speed rail corridor

According to the data provided by BSE, the stock traded at a P/E multiple of 15.17 and a price-to-book ratio of 2.76

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Larsen & Toubro’s stakes on Thursday traded positive and rallied by 2.53 percent at Rs 1176.75 per share even as Sensex and Nifty traded negative. India’s largest engineering, procurement and construction projects, manufacturing, defence and services conglomerate, has received a big offer from the National High-Speed Rail Corporation Limited (NHSRCL) to construct India’s first High-Speed Rail Corridor i.e.  87.569 km of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, also known as the Bullet Train project.

The provisions of the order include the construction of viaducts, one station, major river bridges, maintenance depots, and other auxiliary works. The decided length of construction constitutes of 17.2 percent of the total length and runs elevated from the outskirts of Vadodara to the outskirts of Ahmedabad in the State of Gujarat with one station at Anand / Nadiad.

In reaction to the order, the stocks of Larsen & Toubro rallied by 2.53 percent and touched a single-day high of Rs 1176.75 per share. According to the data provided by BSE, the stock traded at a P/E multiple of 15.17 and a price-to-book ratio of 2.76.

L&T specialises in the distribution and supply of equipment to the infrastructure, mining and irrigation sectors and its shares were trading at Rs 1163.70 per share on BSE, up by 1.39 per cent as recorded at 10.07 am today.