Larsen & Toubro (L&T) shares on Thursday continued gains shaking off market blues that gripped the stock early this week.
What Happened: The government on Wednesday announced that the union cabinet has approved signing a contract with L&T to acquire three cadet training ships. As per a government statement, the deal would be worth around ₹3,108.09 crore.
The ships will be indigenously designed, developed, and constructed at the L&T shipyard in Kattupalli, Chennai. The delivery for the three ships is scheduled to start in 2026. The government statement added that “the project will generate an employment of 22.5 lakh man-days over a period of four-and-half years.”
The cabinet’s nod comes as Jayant Patil, Member of the Executive Committee of Management, Larsen & Toubro, and Advisor, Defence & Smart Technologies to CEO & MD, Larsen & Toubro said that the defense sector in India has no level playing field.
In an interview with The Hindu, Patil said, that while both private and public sectors are allowed to participate in defence production there is no level playing field, as the government gives out orders to its own undertakings on a nomination basis, leaving very little for the private sector.
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Price Action: L&T shares jumped 1.11% to ₹2,138.45 as the markets opened for business on Thursday.
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