L&T Shares: Larsen & Toubro Ltd, a construction & engineering sector company, has fixed July 22, 2022, as the record date for the members entitled to receive the proposed dividend of 1100 per cent or Rs 22 for the year ended March 31, 2022. The dividend, if declared at the AGM, will be paid on or before August 08, 2022.
In its exchange filing, L&T informed BSE that “The Company has fixed Friday, 22nd July 2022 as the Record Date to determine the Members entitled to receive the proposed dividend of Rs. 22.00 per share of face value Rs. 2/- each for the year ended 31st March 2022. Dividend, if declared at the AGM, will be paid on or before Monday, sth August 2022. The Company has fixed Thursday, July 28, 2022, as the Cut-off Date for the purpose of determining the Members eligible to vote on the resolutions set out in the Notice of AGM or to attend the AGM.”
The company has declared 27 dividends since June 21, 2001. Out of 27 declared dividends, 1 is Special, 4 are interim and 22 are final dividends.
Buy Stock For Up To 25 per cent Returns
Domestic brokerage house, LKP Research, has a buy call for Larsen & Toubro Ltd, a construction & engineering sector company. The brokerage suggests buy for a target price of Rs 2087/share and sees a 25 per cent potential upside in 12 months. The company is well-positioned to gain market share in FY23 due to its strong liquidity position vs competition & hence guided for order inflow growth of 12-15 per cent.
Investment Rationale
The report said: “L&T has also been exploring as well as tapping opportunities in a) defence with Make in India initiatives by Govt. b) foray into new energy space particularly EPC for green hydrogen c) improving its competence in solar EPC by providing storage as L&T is seeking tie-up for grid storage battery manufacturing. Further, government focus on infrastructure and capex momentum expected to be strong bodes well for L&T. On the international front, the rise in crude oil prices could revive GCC spends and boost capex prospects in the Middle East to benefit L&T.”
“In the near term, order pipeline at Rs 8.53 trillion (-6 per cent over FY22 as L&T will be strictly very selective in bidding) comprising Rs 6.53tn domestic prospects while international at Rs 2.22 trillion remains encouraging, providing healthy order inflow outlook. The company’s current order book remains strong and at a record high of Rs 3.58 trillion (3.6x core sales) wherein domestic comprising 73 per cent of the OB at Rs 2.62 trillion remains well-diversified across sectors providing healthy revenue visibility going ahead,” the note said.
The brokerage said, “We estimate the topline/EBITDA/PAT to grow at a CAGR of 13 per cent/17 per cent/23 per cent respectively in the period between FY22-24E. We believe, the risk-reward is favorable for L&T (trading at 18.3x FY24E core EPS) and Recommend ‘BUY’ with a SoTP-based price target of Rs 2,087. L&T remains the best proxy for domestic capex and the key beneficiary to tap the opportunities both from the public and private sectors. Having a strong order pipeline coupled with a healthy order book provides good revenue visibility ahead. L&T’s ‘Lakshya 2026 Plan’ is focusing on scaling up new business opportunities which are now in the incubation phase and are expected to bring significant benefits in the future.”
Stock Price History
The stock has given a positive return over the last 5 years, It has delivered 12.44 per cent in 1 year, 13.23 per cent in 3 years & 48.51 per cent in 5 years, respectively. The previous week, the shares moved up 7.33 per cent, while in 1 month, its share price moved up nearly 6.49 per cent. The 52-week low of the stock is Rs 1,456.35/share & 52 week high is Rs 2078.55. It hit the 52-week low on 20th June 2022, while the 52-week high early this year on 22 January.
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