Both companies have pointed to strong demand and are expected to clock impressive revenue growth rates in the current fiscal.
In the past week, its subsidiaries Larsen & Toubro Infotech and Mindtree have reported stellar financial results for the September quarter and analysts have upgraded their earnings forecasts for these stocks. In particular, its investments in the IT sector are delivering. While there's some time to go before these early trends can solidify, L&T has an advantage of other businesses contributing to its performance and valuations. Moneycontrol Pro’s Samvat 2077 Diwali portfolio beat the Nifty. That cycle has been missing for some time now. It could then kick start a virtuous cycle of growth in orders, execution and then investment by these companies. The company is a bellwether for the EPC sector and if its prospects see sustained improvement, then the spillover effect will be felt by its peers as well. EPC is engineering procurement and construction, a large business segment for L&T. “Course correction can have a meaningful impact on volumes, pace of execution and working capital for EPC contractors,” analysts at Kotak Institutional Equities said in a note. The government's continued thrust on infrastructure spending and sharp execution can go a long way in reviving the sector. This can save costs and possibly aid infrastructure spending, though much depends on the co-operation of all stakeholders too, as we wrote recently. The main target is for the government to stimulate investment and shorten execution cycles through better planning. Last week, Prime Minister Narendra Modi launched Gati Shakti, a digital platform that brings together 16 ministries for coordinated implementation of infrastructure projects. What is driving the optimism, however, is the prospect of fast-tracked infrastructure development in India. Such project wins are not unusual for L&T. The company has emerged as the lowest bidder for constructing three buildings of the union government’s central vista project, reports PTI. Shares of Larsen & Toubro (L&T) made a new 52-week high in today’s (October 19th) trade. Pharma Industry Conclave Unlocking opportunities in Metal and Mining.India Inc On The Move Sustainability 100+.
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