L&T has bagged an important offshore rig refurbishment contract from ONGC and the order is valued at Rs 376 crore ($83 million).

The project was awarded to L&Ts newly formed division -The floating Systems Business Unit (FSBU) through a stiff International Competitive Bidding.

FSBU promises to offer single point responsibility for execution of Offshore Drilling Rigs and Floating Production Units in both Domestic and International markets, has been awarded this project from ONGC through a stiff International Competitive Bidding.

The venture will be supported by L&Ts all weather, ultra modern fabrication facilities at Sohar, Oman and Hazira and engineering offices of L&T-Valdel in Faridabad, Bangalore and Chennai, in addition to other L&T work centres. The rig on successful completion will be deployed to assist and augment offshore Oil & Gas drilling operations in ONGCs Offshore Oil & Gas.

Meanwhile, the Electrical & Gulf Projects Operating Company - a part of Larsen 8c Toubros (L&T) Construction Division last month has secured a slew of orders aggregating Rs,1015 crore from Transmission & Distribution Projects in the international and domestic markets.

The company bagged orders worth Rs.811 crore (USD 176 million) from the Gulf market - two orders from TRANSCO for the construction of 3x132 kV Substations at Al Wathba, Mohd Bin Zayed City including Sudha Port Fujairah, It also bagged an order from OETC for the construction of 132/33 kV substation at Quariyat Area including installation of overhead lines in the Muscat Governorate. Moreover, it also bagged another order from PAEW pertains in order to carry out SCADA works for water transmission network. L&Ts Metallurgical, Material Handling & Water Operating Company - a part of L&Ts Construction Division has bagged orders valued at Rs.368 crore from various Customers.

Moreover, L&Ts Thermal Power Plant Construction (TPPC) Business Unit has bagged two orders worth Rs 827 crore. The company bagged one order from GVK Power for their Gautami Combined Cycle Power Plant Expansion and one from SEPCO-I for Talwandi Sabo Power Plant in Punjab.

The order from GVK Power, which is worth Rs 602 crore is for the total construction including certain electrical and mechanical balance of plant items for the 2*392 mw Gautami Stage II Combined Cycle Power Plant in Andhra Pradesh.

L&T is currently trading at Rs.1842.3, up by 0.28% at 11.48 AM on BSE.

The stock hit an intraday high of Rs.1850 till now, as against the 52-week high of Rs.1850.The stock hit a low of Rs.1832 during the day. The stock had hit a 52-week low of Rs.1340 on July 14, 2009.

The stock opens at Rs.1848 at BSE. The total traded volume of the scrip on BSE till now stood at 56117.

Meanwhile today, the BSE Sensex is trading up by 85.47 points, or 0.48%, at 18071.37 on 11:48 AM.

The NSE Nifty is trading up by 25.75 points, or 0.48%, at 5426.4.

L&T has an equity capital of Rs 120.44 crore as of 2010 March. The face value per share is Rs 2. At the current price of Rs 1842.3, the P/E multiple stood at 25.3779965152479 with book Value of 279.21 and P/BV at 6.60.

The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 0.00%, Institutional Investors- 53.60%, General Public- 23.43% and other investors- 22.97%.

Considering the current price of Rs. 1842.3 at 11:48:00 AM, the stock had outperformed the market over the past one month till 14/07/2010 surged 8.08% as compared to the Sensexs return of 4.23% and NSE Niftys 4.4 % returns.

Considering the current price of Rs. 1842.3 at 11:48:00 AM, the stock had outperformed the market over the past one quarter till 14/07/2010 surged 17.28% as compared to the Sensexs return of 2.73% and NSE Niftys 3.11 % returns.

Source: Dalal Street Investment Journal
www.dsij.in