1) L & T News :
Larsen & Toubro (L&T) has recently partnered with ACWA Power to build the Ras Mohaisen Desalination Plant in Saudi Arabia. This facility will use seawater reverse osmosis technology to provide drinking water to nearly one million people in the Makkah and Al-Baha regions.
Apart from this, L&T and ACWA Power have been working together on several renewable energy projects in Saudi Arabia. One of the key projects is the Al Kahfah Solar Power Plant, a 1.17 GW solar energy facility in the Central Province. It utilizes advanced solar tracking technology from Nextracker to improve efficiency and reduce environmental impact.
Another major collaboration is the Sudair Solar PV Project, a 1.5 GW solar plant that ranks among the world’s largest. This project was awarded to L&T by a consortium including ACWA Power and the Saudi Public Investment Fund’s subsidiary.
These initiatives highlight L&T and ACWA Power’s commitment to developing sustainable infrastructure and clean energy solutions in the region.
Extra Reference :
ACWA Common Info :
ACWA Power is a Saudi Arabian company specializing in the development, investment, and operation of power generation and desalinated water production plants. Established in 2004 and headquartered in Riyadh, the company plays a significant role in the global energy sector, particularly in renewable energy and sustainable water solutions.
ACWA Power operates in over 12 countries across the Middle East, Africa, and Asia, focusing on solar, wind, and desalination projects. It is a key player in Saudi Arabia’s Vision 2030 initiative, supporting the country’s transition toward renewable energy. With strategic partnerships and large-scale projects, ACWA Power continues to expand its presence in the global clean energy market.
L & T Stock Analysis :
Over the past 52 weeks, Larsen & Toubro (L&T) has seen notable fluctuations in its stock price. As of March 13, 2025, its share price stood at ₹3,188.40, which is around 19.55% below its 52-week high of ₹3,963, recorded on December 10, 2024.
Recently, L&T’s stock has been volatile. On March 10, 2025, it declined 2.10% to ₹3,177.45, underperforming the broader BSE SENSEX index, which only fell 0.29% on the same day. However, on March 11, 2025, L&T rebounded 0.53% to ₹3,194.25, even as the BSE SENSEX recorded a minor decline of 0.02%.
For L&T Technology Services (LTTS) and L&T Finance Holdings (LTFH), their exact 52-week performance figures were not readily available.
Outlook: Bullish or Bearish?
- L&T: Despite its recent decline from the 52-week high, L&T remains a strong company with a solid order book and continued infrastructure growth in India. If the market conditions stabilize, L&T may see a recovery in the long run, making it a potentially bullish stock. However, short-term fluctuations could persist.
- LTTS & LTFH: Given L&T’s broader sectoral influence, both LTTS and LTFH could follow a similar pattern, but individual financial performance needs to be analyzed further.
For investors, closely monitoring market trends, upcoming projects, and earnings reports will be crucial in assessing the long-term direction of these stocks.
Key Financial Metrics for L & T Companies :
Based on the latest available data, here are the financial metrics for Larsen & Toubro Limited (L&T), L&T Technology Services (LTTS), and L&T Finance Holdings (LTFH):
| Metric | L&T | LTTS | LTFH |
|---|---|---|---|
| Debt-to-Equity Ratio | 0.35 | 0.0261 | Data not available |
| Price-to-Earnings (P/E) Ratio | 31.51 | 35.85 | Data not available |
| Price-to-Book (P/B) Ratio | 4.28 | 8.7 | Data not available |
| Earnings Per Share (EPS) | ₹66.95 | ₹119.06 | ₹9.20 |
| Return on Equity (ROE) | 14.44% | 23.69% | 9.89% |
| Return on Assets (ROA) | 5.31% | 15.36% | Data not available |
| Dividend Yield | Data not available | 1.14% | Data not available |
| Piotroski F-Score | 7 | Data not available | 7 |
2) Polycab News :
Polycab India Secures ₹3,003 Crore Project with BSNL
Polycab India has signed a ₹3,002.99 crore agreement with BSNL to design, supply, construct, install, upgrade, operate, and maintain the BharatNet middle mile network in Bihar Telecom Circle.
The project includes:
- Capital expenditure (Capex): ₹1,549.66 crore
- Operational expenditure (Opex) for the new network: ₹929.79 crore
- Opex for the existing network: ₹523.53 crore
The project will have a three-year construction period, followed by a ten-year maintenance contract, with annual maintenance charges of 5.5% of capex for the first five years and 6.5% for the next five years.
About Polycab India:
Polycab is India’s largest manufacturer of wires and cables and a growing player in the Fast-Moving Electrical Goods (FMEG) sector. It is also involved in engineering, procurement, and construction (EPC) projects.
Financial Performance:
In Q3 FY25, Polycab’s consolidated net profit rose 10.82% to ₹457.56 crore, with revenue increasing by 20.40% to ₹5,226.1 crore compared to Q3 FY24.
Following the announcement, Polycab’s stock rose 0.65% to ₹5,043.20 on the BSE.
Polycab Stock Analysis :
Piotroski Score Analysis: Polycab India & L&T Companies
The Piotroski F-Score evaluates a company’s financial strength on a scale from 0 to 9, based on profitability, liquidity, and operating efficiency. A score of 7-9 indicates strong financial health, 4-6 is moderate, and 0-3 suggests weakness.
Piotroski Scores of Companies:
| Company | Piotroski Score | Financial Health |
|---|---|---|
| Polycab India | 6/9 | Moderate |
| L&T (Main Company) | 7/9 | Strong |
| L&T Finance Holdings | 7/9 | Strong |
Polycab India (Score: 6/9)
Polycab India has a moderate score of 6, reflecting good financial health but some areas needing improvement. Its score has declined slightly in recent years, suggesting that some factors like profitability, efficiency, or leverage management could be under pressure.
Larsen & Toubro (Main Company) & L&T Finance Holdings (Score: 7/9)
Both L&T (Main Company) and L&T Finance Holdings have a solid score of 7, indicating strong financial stability. This suggests that they are performing well in key areas such as profitability, operating efficiency, and financial structure.
Key Analysis & Investment Outlook:
- Polycab India: While still strong, its slightly lower score means investors should watch for signs of declining efficiency or profitability.
- L&T & L&T Finance: A score of 7 reflects a financially stable position, making them attractive investment choices.
- Bullish or Bearish Outlook:
- Polycab India: If profitability improves, it could become more bullish.
- L&T Companies: With a score of 7, they remain strong contenders for long-term investment, leaning bullish.
Final Words :
Investment Analysis: Polycab India & L&T Companies
Why These Companies Are Good Investments?
- Strong Financial Position (High Piotroski Scores)
- L&T (Main Company) & L&T Finance Holdings: A Piotroski score of 7/9 indicates strong financial health, profitability, and efficiency.
- Polycab India: A score of 6/9 still reflects moderate strength, though some areas need improvement.
- Consistent Revenue Growth
- Polycab India: Reported a 20.40% revenue increase YoY, showing strong market demand.
- L&T: A giant in infrastructure, benefiting from government contracts and private sector projects.
- Market Leadership & Competitive Edge
- Polycab India: The largest wires & cables manufacturer in India and a fast-growing FMEG (Fast Moving Electrical Goods) player.
- L&T: A dominant player in infrastructure, engineering, and defense, securing large government and private sector projects.
- Government & Private Sector Demand
- Polycab’s BharatNet Project (₹3,003 Crore) strengthens its position in telecom infrastructure.
- L&T’s Diverse Projects: From smart cities to defense contracts, L&T benefits from government-driven infrastructure expansion.
- Low Debt & Strong Fundamentals
- Polycab’s Debt-to-Equity Ratio (0.02) is extremely low, reducing financial risk.
- L&T maintains a stable debt structure, balancing leverage for growth without excessive risk.
- High Returns on Capital
- Polycab’s ROE (22.17%) & ROA (12.34%) indicate excellent profitability from assets and equity.
- L&T’s robust return ratios suggest effective capital deployment for long-term growth.
Weaknesses & Risks to Consider
- High Valuations (Overpriced Stocks?)
- Polycab’s P/E (41.53) & P/B (8.39) suggest it is trading at a premium. Future growth must justify these valuations.
- L&T’s valuation is moderate but rising; investors must ensure they’re not buying at peak prices.
- Sector-Specific Risks
- Polycab: Heavily dependent on construction, real estate, and industrial expansion. A slowdown in these sectors could affect demand.
- L&T: Faces risks in government policy changes, infrastructure spending cuts, and delays in large projects.
- Declining Piotroski Score for Polycab
- A score of 6 (previously higher) means some financial indicators have weakened over time.
- Investors should monitor profitability trends.
- L&T’s High Capital Intensity
- Large-scale projects require heavy investment, which can strain cash flows.
- Debt-funded growth, if not managed well, could pose risks.
Investment Outlook (Bullish or Bearish?)
| Company | Piotroski Score | Investment Outlook |
|---|---|---|
| Polycab India | 6/9 | Moderate Bullish (Strong fundamentals, but valuation is high) |
| L&T (Main Company) | 7/9 | Strong Bullish (Stable financials, government-backed projects) |
| L&T Finance Holdings | 7/9 | Strong Bullish (Good financials, well-managed lending business) |
Conclusion: Should You Invest?
- Polycab India is a strong company with great growth potential, but its stock may be overvalued right now. If you are a long-term investor, buying on dips could be a good strategy.
- L&T and L&T Finance are solid, stable investments, especially for those looking at infrastructure-driven growth. Their strong Piotroski scores (7/9) make them safer bets.
I hope you like the article
Happy Investing