The “Mega” order win sent Larsen & Toubro; shares trading a record high

29 Sep 2023 , 11:29 AM

After the engineering and construction business revealed its affiliate L&T Construction got a big order from the Mumbai Metropolitan Region Development Authority (MMRDA), its stock rose more than 1% on Friday to reach a new all-time high. Although L&T withheld the precise amount of the order win, it classifies an order as ‘mega’ when its worth exceeds Rs 7,000 crore.

According to L&T, the new order is for the designing and building of an underground road tunnel project in Mumbai that would connect Orange Gate, Eastern Free Way, and Marine Drive Coastal Road.

In response to the news, the stock increased 1.49%, reaching a record high of Rs 3,057 on the BSE. The stock has increased 45% year to date and 67% over the past 12 months.

According to L&T, ‘the major scope of work for the project comprises of design & construction of twin road tunnels, using Tunnel Boring Machines (TBMs), connecting these tunnels to the existing elevated Eastern Motorway at Orange Gate near its southern terminal through transition ramps and to the Marine drive at Mumbai,’

According to L&T, the project alignment would mostly run beneath the Sardar Vallabhbhai Patel Road and is expected to be finished in 54 months.

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