L&T hits a new high

L&T is a bright star today morning stealing the limelight from almost every other sock. The stock opened over 2% higher today at Rs.2954 and went on to hit a new 52-week high at Rs.3008 and continues to trade in the green.

The market is thrilled with the company announcing an upward revision in its buyback price.

In July’23, for the first time ever in its 80-years history, the company had called out a buyback – 2.4% stake or 3.33 crore shares at a price of Rs.3000/share. At that time, the buyback price was at a 17% premium over the market price.

Yesterday night, the company announced that it was hiking the buyback price to Rs.3200/share and was reducing the number of shares to be bought back to 3.12 crore shares of 2.22% stake.

The company said that one of the key objectives of the company’s Strategic Plan, Lakshya ’26, was to enhance the return on equity (ROE) and thereby maximise shareholder value. And with buyback being form of RoE to shareholders, the company decided to hike the price.