vengabeats
Nilesh Nagdev
Engineering & construction major L&T rose nearly 3% to Rs 2,604 after the company won a road project worth Rs 550 crore.
L&T has been a star performer in the past few months. Strong order flows, expansion into international markets and efforts to focus on core businesses have endeared the stock to investors. Following its exit from the cement business, L&T is now focused on the engineering & construction segment. The stock jumped 31.9% in Q4 January-March 2006 beating the Sensex's 20% rise during that period.
L&T has begun the new fiscal year FY 2007 (year ending 31 March 2007) with an order backlog of Rs 25,000 crore, the company's chairman and managing Director, A.M. Naik, told newspersons recently. The orders on hand are executable over the next two years. The company has set itself a target of 22-25% for sales growth for the current year.
L&T has emerged as one of the key beneficiaries of a boom in capital expenditure and infrastructure segment. Its qualification in almost all segments of infrastructure work, coupled with the relatively bigger size of its balance-sheet, gives it an edge over other players in the country.
Recently, L&T announced its proposal to raise up to $ 300 million through issue of foreign currency convertible bonds/International Depository Receipts in one or more tranches. The funds will be used to part-finance the requirements of the company towards capital expenditure for expansion/modernisation, working capital, investments in subsidiaries, infrastructure projects and for other growth requirements including business acquisitions.
In a couple of months, L&T will start building small ships at Hazira in Gujarat. The company had earlier announced that it was looking at ship building in a major way. While no decision has been taken yet on a major entry into ship building, the company will start producing small ships immediately.
In the power generation segment, L&T's plan is to produce hydel power. It has already made bids for three small hydropower projects in Himachal Pradesh. The company intends to start with smaller projects of up to 250 mw.
L&T had recently entered into an agreement to acquire Nashik-based Datar Switchgear under a scheme to be approved by the Board for Industrial and Financial Reconstruction. Datar manufactures miniature circuit breakers and earth leakage circuit breakers, which L&T imports from Hager for the premium-end of the building segment. With the products from Datar, L&T will be able to serve both the premium and mass market.
L&T has been a star performer in the past few months. Strong order flows, expansion into international markets and efforts to focus on core businesses have endeared the stock to investors. Following its exit from the cement business, L&T is now focused on the engineering & construction segment. The stock jumped 31.9% in Q4 January-March 2006 beating the Sensex's 20% rise during that period.
L&T has begun the new fiscal year FY 2007 (year ending 31 March 2007) with an order backlog of Rs 25,000 crore, the company's chairman and managing Director, A.M. Naik, told newspersons recently. The orders on hand are executable over the next two years. The company has set itself a target of 22-25% for sales growth for the current year.
L&T has emerged as one of the key beneficiaries of a boom in capital expenditure and infrastructure segment. Its qualification in almost all segments of infrastructure work, coupled with the relatively bigger size of its balance-sheet, gives it an edge over other players in the country.
Recently, L&T announced its proposal to raise up to $ 300 million through issue of foreign currency convertible bonds/International Depository Receipts in one or more tranches. The funds will be used to part-finance the requirements of the company towards capital expenditure for expansion/modernisation, working capital, investments in subsidiaries, infrastructure projects and for other growth requirements including business acquisitions.
In a couple of months, L&T will start building small ships at Hazira in Gujarat. The company had earlier announced that it was looking at ship building in a major way. While no decision has been taken yet on a major entry into ship building, the company will start producing small ships immediately.
In the power generation segment, L&T's plan is to produce hydel power. It has already made bids for three small hydropower projects in Himachal Pradesh. The company intends to start with smaller projects of up to 250 mw.
L&T had recently entered into an agreement to acquire Nashik-based Datar Switchgear under a scheme to be approved by the Board for Industrial and Financial Reconstruction. Datar manufactures miniature circuit breakers and earth leakage circuit breakers, which L&T imports from Hager for the premium-end of the building segment. With the products from Datar, L&T will be able to serve both the premium and mass market.