L&T shares at record high as infra stocks find favour

New Delhi: Shares of the infrastructure major Larsen and Toubro (L&T) on Monday was at 52-week high at ₹1,582.80 on both the equity benchmark indices as the company raised its stake in IT firm Mindtree Ltd by about 2% between 20-24 May by picking up shares of over ₹316 crore.

The shares of the firm was trading at ₹1,582.80 up 2.54% on BSE, while on the 50-listed index, L&T was rose 2.62% at ₹1,584.55. On the bourses, the infrastructure company was at a 52-week high.

According to BSE data on 25 May, L&T acquired shares of Mindtree from the open market throughout the week with the highest quantum of shares being purchased on 24 May when it picked up nearly 25 lakh shares of Mindtree at ₹980 apiece.

The development had significance as L&T has already acquired around 20% stake in the mid-sized, IT firm from VG Siddhartha and Cafe Coffee Day and is keen to increase its shareholding by up to 66%.

Meanwhile, after the election results, among many brokerages, L&T was one of the top picks. “In Modi 2.0 era, we expect the larger economic reforms and social welfare agenda to continue, with a renewed emphasis on infrastructure development (roads, housing and waterways),” said Gautam Duggad, head of research at institutional equities at Motilal Oswal Financial Services. L&T was among the top large-cap stock picks of Motilal Oswal.

The infrastructure major reported an 8% rise to ₹3,418 crore in net profit in the fourth quarter led by strong revenue growth and operational efficiencies. Revenue from operations for the quarter grew 10% from ₹40,676 crore to ₹44,933 crore. Revenue in FY19 was ₹1.41 lakh crore, 18% higher compared with ₹1.19 lakh crore in FY18. International revenue was ₹45,109 crore for the year, constituting 32% of total revenue.