RCFL bags Rs 797-cr order from Larsen & Toubro
Larsen & Toubro secured new business.
· Business Standard Mkts
Rashtriya Chemicals and Fertilizers (RCFL) said that it has awarded a purchase order worth Rs 797 crore to Larsen & Toubro for revamp of its ammonia plant for reduction in specific energy consumption.
The analysis
Larsen & Toubro reported Rs 797 and Rs 797 crore. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -2.0% on the day at ₹3,626.00, and has returned -6.7% over three months. It sits 18% below its 52-week high. The infrastructure sector has moved -12.9% over the same period, so Larsen & Toubro is running 6.2 points ahead of its peers.
For Larsen & Toubro, the question is how much of this is already reflected in the price and how much re-rates the infrastructure peer set alongside it.
Why it matters
- A large order lengthens revenue visibility, which is what the market pays a premium for in capital-goods and infra names.
Market context
- The company directly in focus is LT.
- Sector exposure: Infrastructure.
- The immediate tone of coverage reads positive.
In this story
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