Larsen & Toubro (L&T) shares were in focus on Monday’s trading session following the announcement of a significant contract from the National High Speed Rail Corporation Ltd (NHSRCL) to build 156 Route Km (RKM) of high-speed ballastless track (Package T1) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) Corridor.
The scope of the project encompasses the design, supply, construction, testing, and commissioning of track works on a Design-Build Lump Sum Price arrangement between Mumbai (Bandra-Kurla complex) and Zaroli village in Gujarat. This effort also includes over 21 km of underground track work (linking to Civil packages C1 and C2) and 135 km of track on elevated viaduct sections (Pkg C3).
This order represents the second track work package that L&T has acquired for the MAHSR project. In April 2022, NHSRCL granted Package T3 (116 km) to L&T from just south of Vadodara city to the Sabarmati depot, which is advancing swiftly. With this latest contract, L&T is now responsible for more than 50% of the track works for the MAHSR.
The Japanese Shinkansen J Slab Track Technology will be utilized for the track works, allowing for speeds of up to 320 km/h, improved ride quality, and enhanced durability and maintainability.
S V Desai, Whole-time Director & Sr EVP (Civil Infrastructure) at L&T, remarked on the order acquisition, saying, “Our achievement in the T3 package was driven by swift technology integration, localization of equipment, and cost-effective engineering. This has been a critical element of our strategy for this new order, and we are assured of timely delivery.”
L&T shares
L&T share price opened at ₹3,581 apiece on the BSE, the stock touched an intraday high of ₹3,607.40, and an intraday low of ₹3,577 apiece.
According to Ruchit Jain, VP – Equity Technical Research, Motilal Oswal Financial Services Ltd, L&T share price has consolidated within a range in last few weeks. The 200 DEMA has been acting as a support which is placed around Rs.3500. The stock can see a short term pullback towards ₹3,700-3,730.
On the same line, Anshul Jain, Head of Research at Lakshmishree, said that Larsen & Toubro has been consolidating in a broad range of 3,207–3,853 for the past 82 weeks, with price action showing no signs of immediate breakout. The prolonged consolidation suggests that the stock is building a strong base, and range-bound action may continue for a few more weeks.
“Investors can look to accumulate within this range on dips, as the long-term structure remains bullish. A decisive close above 3,853 will act as a breakout trigger, paving the way for a sharp rally toward 4,200 levels, unlocking the next leg of upside momentum,” said Jain.
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