L&T to consider share buyback next week; stock hits 52 week high

Larsen and Toubro (NSE: LT) shares rose over 3 per cent and hit 52 week high on the BSE at Rs 2,572.8 apiece. The D- Street showed buying interest in the stock after the engineering and construction conglomerate announced it was considering a share buyback.

"A meeting of Board of Directors will be held on Tuesday, 25th July 2023, to approve..... buyback of equity shares of the Company in accordance with the provisions of the Companies Act, 2013 and SEBI (Buyback of Securities) Regulations 2018," the regulatory filing read.

The company said it will also consider a special dividend, and if approved, the record date for the same will be August 2.

"Special Dividend on equity shares for the Financial Year 2023–24, if approved, the record date to determine the entitlement of the equity shareholders for the said dividend shall be Wednesday, August 2, 2023," the filing read.

At around 10:00 AM, shares of L&T were trading at Rs 2559.55 apiece, up 2.81 per cent. The market capitalisation of the stock stood at Rs 3,61,225.17 crore.

What do analysts suggest?

"L&T's move on the share buyback is positive. The management has given growth guidance of 12 per cent to 15 per cent in revenue and order book. One who has bought the stock should hold it with a long-term view," said Zee Business panellist Siddharth Sedani.

"Structure-wise, the stock is sideways, but it has made a base at Rs 2,450, and the stock will have an upward trajectory. There is a bullish flag formation that is giving a positive trend signal," said Sacchitanand Uttekar, Vice President of Research and Data Analysis at Tradebulls Securities.

Brokerages' view

Global brokerages are bullish on L&T. Morgan Stanley has maintained an Overweight rating with a target of Rs 2,647 apiece. Jefferies has maintained a 'buy rating for a target price of Rs 2,910 apiece, and Citi has also maintained a 'buy rating for a target price of Rs 2,896 a share.

L&T share price history

So far in 2023, the stock has gained over 22 per cent as compared to the Nifty's rise of nearly 9 per cent.

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