L&T hits a new 52-week low

Larsen & Toubro hit a new 52-week low at Rs.1206.45, this new low is after March 2014. And even now it remains near the lower levels at Rs.1209 levels. The stock seems to be really far away from its 52-week high of Rs.1892.95.

Yesterday, the company had announced that it had received Rs.2871 crore worth orders. And today, the mood has turned around completely. There is growing concern that its international business could get affected due to ongoing tensions in the Middle East. The current brawl between Saudi Arabia and Iran, the ongoing war in Syria and Yemen; all these are expected to hit its exports to the region. The Middle East business is big for L&T – it contributes around 25-30% to total international business.

With the capital goods sector as such facing a slow run, this news only goes on to exacerbate the outlook further.