Larsen & Toubro Ltd, India's biggest engineering company, may have won approval to build a 30 billion rupee (S$1.1 billion) shipyard and port in southern India, according to a report published yesterday.
Larsen & Toubro is negotiating orders of about US$1 billion with global shipping companies to build ships in the planned yard and port in Tamil Nadu state, Macquarie Group Ltd analyst Inderjeet Singh Bhatia wrote in his report.
The analyst, who has a 'buy' on the stock, said the contract may soon be approved, based on media reports. Deepak Morada, a Mumbai-based Larsen & Toubro spokesman, declined to comment.
An increase in overseas trade is spurring demand for ship building and repairs, prompting companies such as Larsen & Toubro to expand.
Yards in South Korea, the world's biggest shipbuilding nation, are boosting capacity to meet an order backlog that will keep them busy for four years.
Larsen & Toubro's total orders may rise as much as 31 per cent to 402 billion rupees in the year ending March 31, Mr Bhatia wrote in the report. Larsen & Toubro has won 150 billion rupees of orders since last October, compared with 175 billion rupees of orders in the first six months of the fiscal year started April 1.
The company's shares fell 3.7 per cent to 3,554 rupees at 1pm local time yesterday on the Bombay Stock Exchange, after declining as much as 19 per cent. The Sensitive Index fell 5.9 per cent.
Larsen & Toubro is negotiating orders of about US$1 billion with global shipping companies to build ships in the planned yard and port in Tamil Nadu state, Macquarie Group Ltd analyst Inderjeet Singh Bhatia wrote in his report.
The analyst, who has a 'buy' on the stock, said the contract may soon be approved, based on media reports. Deepak Morada, a Mumbai-based Larsen & Toubro spokesman, declined to comment.
An increase in overseas trade is spurring demand for ship building and repairs, prompting companies such as Larsen & Toubro to expand.
Yards in South Korea, the world's biggest shipbuilding nation, are boosting capacity to meet an order backlog that will keep them busy for four years.
Larsen & Toubro's total orders may rise as much as 31 per cent to 402 billion rupees in the year ending March 31, Mr Bhatia wrote in the report. Larsen & Toubro has won 150 billion rupees of orders since last October, compared with 175 billion rupees of orders in the first six months of the fiscal year started April 1.
The company's shares fell 3.7 per cent to 3,554 rupees at 1pm local time yesterday on the Bombay Stock Exchange, after declining as much as 19 per cent. The Sensitive Index fell 5.9 per cent.