PL Stock Update – L&T

PL Stock Update – L&T - *Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd*

L&T update

✳️Board to consider buy back of shares and special dividend in its board meeting to be held on 25th July 2023.

✳️The company has not revealed the total number of equity shares that will be bought back.

* While we are awaiting on premium to current market price for Buy Back, it can be sentimentally positive for stock.

PL view

We believe L&T is well-placed to benefit in long run with strong tender prospects, better order conversion in domestic market, significant traction inhydrocarbon segment from exports market and expected uptick in private capex. The stock is currently trading at PE of 28.1x/23.9x FY24/25E. We have Buy rating on stock with TP of Rs2615.