Larsen & Toubro Ltd
NSE:LT

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Larsen & Toubro Ltd Logo
Larsen & Toubro Ltd
NSE:LT
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Price: 3 603.5 INR 3.44% Market Closed
Market Cap: 5T INR
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Intrinsic Value

The intrinsic value of one LT stock under the Base Case scenario is 3 364.99 INR. Compared to the current market price of 3 603.5 INR, Larsen & Toubro Ltd is Overvalued by 7%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

LT Intrinsic Value
3 364.99 INR
Overvaluation 7%
Intrinsic Value
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Larsen & Toubro Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Larsen & Toubro Ltd

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Business Breakdown

Larsen & Toubro Ltd. (L&T) is a powerhouse in the Indian infrastructure and engineering sector, with a legacy that dates back to 1938. Founded by two Danish engineers, L&T has grown from humble beginnings into a global conglomerate, renowned for its robust capabilities in engineering, construction, and manufacturing across diverse sectors. The company excels in executing large-scale projects, including critical infrastructure development like roads, bridges, power plants, and urban infrastructure, positioning itself as a vital partner in India's economic growth story. With its unwavering commitment to quality and engineering excellence, L&T has established itself as a trusted name, boasting...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Larsen & Toubro Ltd

Current Assets 2.3T
Cash & Short-Term Investments 602.2B
Receivables 870.9B
Other Current Assets 817.6B
Non-Current Assets 1.3T
Long-Term Investments 137.7B
PP&E 187.6B
Intangibles 251.7B
Other Non-Current Assets 698.3B
Current Liabilities 2T
Accounts Payable 515.6B
Short-Term Debt 384.3B
Other Current Liabilities 1.1T
Non-Current Liabilities 720.5B
Long-Term Debt 529.6B
Other Non-Current Liabilities 191B
Efficiency

Earnings Waterfall
Larsen & Toubro Ltd

Revenue
2.4T INR
Cost of Revenue
-1.6T INR
Gross Profit
795.5B INR
Operating Expenses
-585.4B INR
Operating Income
210.1B INR
Other Expenses
-74.8B INR
Net Income
135.2B INR

Free Cash Flow Analysis
Larsen & Toubro Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Larsen & Toubro achieved robust performance in Q2 FY '25, with revenues climbing to INR 616 billion, reflecting a 21% year-over-year growth. The Projects & Manufacturing segment saw a substantial 28% rise, while international revenues made up 52% of total. Despite a slight decrease in EBITDA margin to 10.3%, net profit after tax rose 5% to INR 34 billion. Looking ahead, L&T anticipates order inflows to increase by 10% and revenue growth to reach 15%, while maintaining margins around 8.2% for the Projects & Manufacturing segment. Their order book has strengthened to INR 5 trillion, driven by significant investments in infrastructure and energy projects.

What is Earnings Call?
Fundamental Scores

LT Profitability Score
Profitability Due Diligence

Larsen & Toubro Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
56/100
Profitability
Score

Larsen & Toubro Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

LT Solvency Score
Solvency Due Diligence

Larsen & Toubro Ltd's solvency score is 45/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Positive Net Debt
Average D/E
45/100
Solvency
Score

Larsen & Toubro Ltd's solvency score is 45/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LT Price Targets Summary
Larsen & Toubro Ltd

Wall Street analysts forecast LT stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LT is 4 071.71 INR with a low forecast of 2 975.46 INR and a high forecast of 4 642.05 INR.

Lowest
Price Target
2 975.46 INR
17% Downside
Average
Price Target
4 071.71 INR
13% Upside
Highest
Price Target
4 642.05 INR
29% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for LT is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
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Average
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Profile

Larsen & Toubro Ltd Logo
Larsen & Toubro Ltd

Country

India

Industry

Construction

Market Cap

5T INR

Dividend Yield

0.78%

Description

Larsen & Toubro Ltd. is an investment holding company, which engages in technology, engineering, construction, manufacturing, and financial activities. The company is headquartered in Mumbai, Maharashtra and currently employs 40,253 full-time employees. The Company’s segments include Infrastructure, Power, Heavy Engineering and Defense Engineering. The Infrastructure segment is engaged in engineering and construction of buildings and factories, transportation infrastructure and heavy civil infrastructure. The Power segment offers solutions for coal-based and gas-based thermal power plants. The Heavy Engineering segment manufactures and supplies custom-designed, engineered critical equipment and systems. The Defense Engineering segment is engaged in designing, development, serial production and supporting of equipment, systems and platforms for defense and aerospace sectors. The company also includes communication projects, hydrocarbon, marketing and servicing of construction and mining machinery and parts, and manufacture and sale of rubber processing machinery.

Contact

MAHARASHTRA
Mumbai
L&T House, Ballard Estate, P. O. Box: 278,
+912267525656.0
www.larsentoubro.com

IPO

1994-11-03

Employees

40 253

Officers

MD & Chairman
Mr. Sekharipuram Narayanan Subrahmanyan
President, CFO & Whole-Time Director
Mr. Ramamurthi Shankar Raman
Company Secretary & Compliance Officer
Mr. Azhakankumarath Sivaram Nair
Whole-time Director & President of Energy
Mr. Subramanian Sarma
Senior EVP of Utilities & Whole-Time Director
Mr. Tharayil Madhava Das B.Tech.
Senior EVP of Civil Infrastructure & Whole-Time Director
Mr. Sudhindra Vasantrao Desai
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Senior EVP of Heavy Engineering & L&T Valves and Whole-Time Director
Mr. Anil Vithal Parab
Senior Vice President of Corporate Finance & Enterprise Risk Management
Mr. R. Govindan
Technical Head
Marnix Coomans
Head of Administration
Bahadur Hitendra
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See Also

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What is the Intrinsic Value of one LT stock?

The intrinsic value of one LT stock under the Base Case scenario is 3 364.99 INR.

Is LT stock undervalued or overvalued?

Compared to the current market price of 3 603.5 INR, Larsen & Toubro Ltd is Overvalued by 7%.

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