L&T’s new subsidiary launch propels shares to 52-week high

The Indian headline indices kicked off the trading session on a cheerful note, driven by substantial gains in power, utilities, real estate, and capital goods sectors. However, BSE Information Technology and BSE Teck were the sole sectors experiencing losses. With 2,290 shares rising on the BSE and 1,104 shares declining, the advance-decline ratio strongly remained in favour of advances.

Larsen & Toubro (L&T) surged as one of the leading gainers on the BSE Sensex due to heightened buying activity following the company’s announcement of a favourable development.

New subsidiary and the increased optimism 

L&T announced the establishment of a new wholly owned subsidiary, L&T Semiconductor Technologies Limited (LTST), on November 29, 2023. The company holds 100% of the shares, including those held by its nominees. This new subsidiary is specifically formed to engage in the business of fabless semiconductor chip design and product ownership.

Shares of the company experienced a notable rise of around 2.70% today, reaching a new 52-week high of Rs 3,195.50 per share on the BSE. Over the past 6 months, the shares have shown a remarkable ascent, registering a growth of around 43%, thereby delivering more than 50% returns to investors year-to-date.

About the company 

Larsen and Toubro Ltd (L&T) is an Indian multinational conglomerate, specializing in Hi-Tech Manufacturing and Services. The company is prominently involved in offering engineering, procurement, and construction (EPC) solutions across various crucial sectors. L&T’s operations span infrastructure, hydrocarbon, power, defense, information technology, and financial services, serving both domestic and international markets.

L&T has maintained a robust and customer-centric strategy, coupled with a continuous pursuit of top-notch quality, allowing the company to achieve and uphold leadership in its primary lines of business for a span of eight decades. This success extends across a global presence, with operations in over 50 countries worldwide.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.