Shares of Larsen & Toubro Ltd. rose to their highest in eight months after the company's construction and mining equipment business won its biggest-ever order.
L&T will supply 46 units of Komatsu Mining equipment to Tata Steel Ltd., according to an exchange filing Wednesday. The order comprises 41 units of Komatsu HD785-7, which is a 100-tonne dump truck; three units of Komatsu WA900-3E0, a 9-cum wheel loader; and two units of Komatsu D275A-5R, a 410HP crawler dozer, it said.
The scope includes supply of the equipment and full maintenance contract for 60,000 hours of equipment operations. Of these 46 units, 26 will be deployed at Tata Steel's iron ore mines at Joda, Noamundi and Khondbond in Odisha. Another 20 units of the 100-tonne dump trucks will be deployed at Tata Steel's West Bokaro coal mines in Jharkhand.
The amount of the order is undisclosed.
Shares of L&T gained as much as 4.4% to Rs 1,128.75 apiece. The stock is up for the third straight day. Of the 41 analysts tracking L&T, 38 have a 'buy' rating, two suggest a 'hold' and one recommend a 'sell'. The average of Bloomberg consensus 12-month target price implies an upside of 6.6%.
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