InvestorQ : What has triggered the stock of Larsen & Toubro to touch a record yearly high during the week?
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What has triggered the stock of Larsen & Toubro to touch a record yearly high during the week?

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4 months ago
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India’s EPC giant, Larsen & Toubro, touched a yearly high price of Rs.1,648 on Friday after the heavy engineering arm of L&T received an order for Oxidation Reactor from Technip Energies-India. The order size has not been disclosed but it is expected to be a critically large order. The order is for a Titanium Clad Reactor for a PSU petrochemical project to manufacture purified Terephthalic Acid or PTA. It is an end-to-end project execution.

Meanwhile, the stock of L&T has also gained from a renewed focus on its core EPC business and hiving off all non-core businesses. L&T had recently announced sale of its 99 MW hydro power plant in Uttarakhand to Renew Power for Rs.985 crore. The markets are also enthused by the pick up in oil prices, since a bulk of L&T orders come from the oil-rich GCC countries, whose fortunes are directly linked to crude oil prices.

The market is also counting on more asset monetization coming up. These would include the sale of its Nabha Power plant, stake sale in L&T IDPL as well as the imminent monetization of the Hyderabad Metro project by L&T.

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