Trending stocks: L&T shares rise over 2% ahead of Q4 earnings

NEW DELHI: Shares of Larsen & Toubro Ltd. traded 2.12 per cent up in Friday's trade at 10:52AM (IST). Around 114,470 shares changed hands on the counter.

The scrip opened at Rs 937.5 and touched an intraday high and low of Rs 964.9 and Rs 937.5, respectively, in the session so far. The stock of Larsen & Toubro Ltd. quoted a 52-week high of Rs 1591.6 and a 52-week low of Rs 661.05.

Total market cap of the Larsen & Toubro Ltd. stood at Rs 133762.83 crore at the time of writing this report.


Larsen & Toubo (L&T) is expected to report a double digit drop in net profit for March quarter, hurt by halt in construction activity in March. Sales is seen falling in single digits. Margins for the quarter are expected to decline by 50-60 basis points. All eyes will be on the infra segment margin and working capital for the construction and engineering major. Investors would also keenly await management commentary on order outlook and the impact of the lockdown on execution.


Key Financials
The company reported consolidated sales of Rs 36242.68 crore for the quarter ended 31-Dec-2019, up 2.59 per cent from previous quarter's Rs 35328.45 crore and up 1.49 per cent from the year-ago quarter's Rs 35708.87 crore.

The net profit for latest quarter stood at Rs 2352.12 crore, up 15.21 per cent from the same quarter a year ago.

Shareholding pattern
As of 31-Mar-2020, DIIs held 18.95 per cent stake in the firm, while foreign institutional investors held 16.69 per cent and the promoters 0.0 per cent.


Valuation ratio
According to BSE data, the stock traded at a P/E multiple of 13.69 and a price-to-book ratio of 1.94. A higher P/E ratio shows investors are willing to pay a higher price because of better future growth expectations. Price-to-book value indicates the inherent value of a company and is the measure of the price that investors are ready to pay even for no growth in the business.

Larsen & Toubro Ltd. belongs to the Construction & Engineering industry.