Share price of Larsen & Toubro jumped over 4 percent intraday on March 26 after global reserach firm Morgan Stanley maintained an overweight stance on the stock with target of Rs 941 per share.
The firm is of the view that sharp correction in the stock price of L&T provides a good opportunity for long-term investors.
L&T trades at relative P/B multiple of 0.7x, the brokarage firm said. It is of the view that key catalyst includes potential buyback or special dividend from the company adding that L&T may witness stronger domestic order from H2FY21.
The company’s board has approved the first interim dividend of Rs 10 per equity share, which is 500 percent on the face value of Rs 2 each, for the financial year 2019-20. The record date for the purpose of determining the entitlement of the equity shareholders for the dividend is March 26, 2020, the company said in a filing to the exchanges.
Larsen & Toubro won an order for design, supply, installation and commissioning of power transmission infrastructure for the 800-MW Rupsha power plant in Bangladesh. The company will also build 220kV substations in Nepal and set up 380kV and 230kV transmission-line corridors in Saudi Arabia.
The stock price gained 10 percent in the last 3 days and was quoting at Rs 800, up Rs 33.45, or 4.36 percent. It was trading with volumes of 120,654 shares, compared to its five day average of 464,204 shares, a decrease of -74.01 percent.
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