INSUBCONTINENT EXCLUSIVE:
Shares of Larsen - Toubro rose almost 3 per cent to ?1,332.80 on Thursday after the company retained its FY20 guidance despite its December
have been underperformers in recent years in the absence of investments
target of ?1,700 on L-T, said the stock is now trading at around 16 times adjusted core price-to-earnings ratio against a historical average
two years and 16 per cent in three years on a compounded basis.
Motilal Oswal Financial Services said the bleak operating performance in the
December quarter was largely attributable to the weakness in core engineering and construction (E-C) segment, where revenue declined 3 per
Oswal expects L-T to announce a special dividend after the deal to sell its Electrical and Automation (E-A) business to Schneider concludes
major capex and aversion to capital allocation in the asset business, there is a high likelihood that L-T may announce special dividend to
return excess cash to shareholders, especially as the new tax rules for buyback have made it redundant for the company to choose between the
