Mumbai: Shares of Larsen and Toubro Ltd (L&T) on Monday jumped as much as 5.2%, the maximum in 20 months, after the company reported a 19.42% increase in net profit and higher order inflows in the third quarter of the fiscal year.

The stock touched a high of 1,151.50 and gained as much as 5.2%, its steepest gains since 2 June 2014. This is the second session when the stock is trading higher. So far this year the stock fell 10%. In 2015, it fell 14.76%.

Net profit rose to 1,034.80 crore in the three months ended 31 December from 866.54 crore a year ago. Net sales rose 7.62% to 25,387.15 crore compared with 23,588.74 crore a year ago.

Chief financial officer R. Shankar Raman said that L&T expects 10-15% revenue growth in the current fiscal year, Mint reported on Friday after the company’s quarterly earnings.

Bloomberg analyst surveys forecasted that the conglomerate would post a net profit of 1,043 crore for the reporting quarter on sales of 26,377.20 crore.

“L&T’s guidance of 4-5% on order book and revenue guidance of 10-15% in the current fiscal year is positive for the company and hence the stock is trading higher. We expect further upside from this," said Amit Singh, vice-president—institutional equities at Choice Broking, in his report

CIMB Securities has upgraded the stock to “add" versus “hold" and kept its price target at 1,300 a share. Antique Broking has upgraded the stock to “buy" and kept its target price of 1,541 a share. Yes Securities has kept a neutral rating on the stock and expects that the stock may go 20% higher from the current levels.

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