L&T to consider share buyback, special dividend next week, stock zooms by 3%

Larsen and Toubro (L&T), a conglomerate specializing in engineering and infrastructure, made an announcement on Thursday that it will discuss the possibility of a share buyback during its upcoming board meeting next week.

The meeting, scheduled for July 25, will also involve the approval of results for the June quarter. Within the meeting’s agenda, the company will explore the option of buying back equity shares in compliance with the provisions of the Companies Act, 2013, and SEBI (Buyback of Securities) Regulations 2018.

Additionally, the board will consider the issuance of a special dividend on equity shares for the financial year 2023-24.

If the proposal is approved, the record date for determining the entitlement of equity shareholders to the aforementioned dividend will be set for Wednesday, August 2, 2023.

The company has not disclosed the total number of equity shares that will be repurchased in the buyback process.

Upon reviewing the company’s financials for the last quarter, it is evident that the top-line revenue experienced year-on-year growth of 10.38% YoY, rising from Rs 52,851 Crore to Rs 58,335 Crore. Additionally, the bottom line, represented by net profit, witnessed a growth of 7.75%, increasing from Rs 4,138 Crore to Rs 4,459 Crore.

Following the announcement of this news, the company’s shares displayed strength in the trading session today, commencing the day at Rs 2523.40, a 1.3% increase compared to the previous day’s closing price of Rs 2,489.60 on the BSE. While writing this article the stocks are trading at a price of Rs 2562.30 each on BSE. The current market capitalisation of the company is Rs 3,60,150 Crore.

Over the past year, the stock has delivered an impressive return of 44%, and over the last three years, it has generated remarkable returns amounting to 173%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.