L&T Share Price Soars 6% in One Week: L&T Buyback Announcement and Saudi Aramco Deal Driving the Trend?
The share price of Larsen & Toubro (L&T) surged by 6.03% from Rs 2731.80 on 5th September and closed at Rs 2893.80 on 11th September 2023. On September 8, L&T stock reached a 52-week high of Rs 2,927.95 on the BSE.
The jump in the share price was seen after the company proposed a buyback of Rs 10,000 crore. The announcement of the $4-billion deal from Saudi Aramco further drove the growth.
The current market capitalization of L&T is 4.07 lakh crores, as of 11th September.
L&T Share Price Soars 6% High in One Week: Historical Share Price Performance
| 1-month | 6-months | 1-year | 5-years |
| 8.90% | 35.74% | 47.64% | 113.16% |
(Data as of 11th September, 2023)
L&T Share Price Soars 6% High in One Week: Proposed Buyback of Rs 10,000 Crores!
L&T has set September 12, 2023, as the Record Date for its Rs 10,000 crore share buyback. They plan to buy back over 3.33 crore fully paid-up equity shares at Rs 3,000 per share. All current equity shareholders, including GDS holders who convert to equity shares, can participate.
The aim is to boost shareholder value, increase profitability, release working capital, and improve return on equity. It is also a part of the group Lakshya 2026 company plan.
| Buyback Type | Tender Offer |
| Buyback Record Date | 12th September, 2023 |
| Buyback Offer Amount | Rs 10,000 crores |
| Date of public announcement | 25th July, 2023 |
| Buyback Offer Size | 2.37% |
| Buyback Number of Shares | 3,33,33,333 |
| Buyback Price | Rs 3000 per equity share |
Buybacks are when companies buy their own shares to enhance their ownership and can be done through tender offers or open market purchases. It helps improve financial metrics and supports the share price.
L&T Share Price Soars 6% High in One Week: L&T’s Deal with Saudi Aramco
The major engineering conglomerate has landed a significant contract from Saudi Aramco, with an estimated total value of $3.9 billion.
The contract pertains to Saudi Aramco's extensive $10 billion expansion project at its Jafurah unconventional gas production site in Saudi Arabia. L&T has been selected as the contractor for two packages: Package 1, valued at $2.9 billion, and Package 3, with a worth of $1 billion.
L&T Share Price Soars 6% High in One Week: Key Takeaways
1. L&T's share price experienced a 6% surge in one week and recorded a 52-week high of Rs 2,927.95
2. The company has proposed share buyback of Rs 10,000 crores, which is at Rs 3,000 per share.
3. L&T has also bagged a contract with Saudi Aramco of $3.9 billion value.
L&T Share Price Soars 6% High in One Week: Analyst’s Call
- CLSA: The brokerage firm has kept the “Buy” rating and has further pushed the target price to Rs 3,240. The firm added that the reason for the target price revision is large fossil and non-fossil Middle East orders.
- Citi: The firm has given a “Buy” rating to the share and added the target price to Rs 3,175. The firm highlighted that the buyback of Rs 10,000 crores is boosting the confidence of the investors.
- Morgan Stanley: The brokerage remains “overweight” on the share and sets the target price to Rs 2,935.