Can a special dividend by L&T trigger upside in the stock?
The stock has underperformed the benchmark S&P BSE Sensex by 22% from March 23 lows.
In early September, L&T received Rs 14,000 crore from the sale of its electrical and automation division to Schneider Electric. A portion of the net proceeds of around Rs 11,500-Rs 12,000 crore after deducting the capital gains tax, will be utilised towards paying the dividend.
ET Intelligence group: L&T’s proposed special dividend may rekindle investors' interest in the stock. It has been range bound for the past six months due to the concerns over growth in order intake and revenue for its core engineering and construction (E&C) business amid the COVID-19 pandemic.The board of the country’s largest infrastructure company will be meeting on October 28 and if the special dividend is approved then the record