BSE:500510

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Executive Summary

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Larsen & Toubro's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500510 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

500510

-2.9%

IN Construction

-4.3%

IN Market


1 Year Return

-39.6%

500510

-33.9%

IN Construction

-1.6%

IN Market

Return vs Industry: 500510 underperformed the Indian Construction industry which returned -33.9% over the past year.

Return vs Market: 500510 underperformed the Indian Market which returned -1.6% over the past year.


Shareholder returns

500510IndustryMarket
7 Day-1.2%-2.9%-4.3%
30 Day-8.8%-8.3%-4.2%
90 Day-7.6%-1.6%6.6%
1 Year-38.3%-39.6%-32.6%-33.9%0.2%-1.6%
3 Year-18.2%-22.1%-28.5%-31.5%1.9%-3.0%
5 Year-3.7%-10.4%-9.9%-15.6%38.6%28.4%

Price Volatility Vs. Market

How volatile is Larsen & Toubro's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Larsen & Toubro undervalued compared to its fair value and its price relative to the market?

15.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500510 (₹889.3) is trading above our estimate of fair value (₹216.79)

Significantly Below Fair Value: 500510 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500510 is poor value based on its PE Ratio (15.9x) compared to the IN Construction industry average (12.4x).

PE vs Market: 500510's PE Ratio (15.9x) is in line with the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: 500510 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 500510 is overvalued based on its PB Ratio (1.9x) compared to the IN Construction industry average (0.5x).


Next Steps

Future Growth

How is Larsen & Toubro forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500510's forecast earnings growth (26% per year) is above the savings rate (7.2%).

Earnings vs Market: 500510's earnings (26% per year) are forecast to grow slower than the Indian market (26.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500510's revenue (13.5% per year) is forecast to grow faster than the Indian market (11.9% per year).

High Growth Revenue: 500510's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500510's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Larsen & Toubro performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500510 has high quality earnings.

Growing Profit Margin: 500510's current net profit margins (5.6%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 500510's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: 500510's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500510 had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Construction industry average (-16.1%).


Return on Equity

High ROE: 500510's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is Larsen & Toubro's financial position?


Financial Position Analysis

Short Term Liabilities: 500510's short term assets (₹1,826.9B) exceed its short term liabilities (₹1,447.3B).

Long Term Liabilities: 500510's short term assets (₹1,826.9B) exceed its long term liabilities (₹871.7B).


Debt to Equity History and Analysis

Debt Level: 500510's debt to equity ratio (184.9%) is considered high.

Reducing Debt: 500510's debt to equity ratio has reduced from 197.4% to 184.9% over the past 5 years.

Debt Coverage: 500510's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: 500510's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Larsen & Toubro current dividend yield, its reliability and sustainability?

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500510's dividend (1.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: 500510's dividend (1.8%) is low compared to the top 25% of dividend payers in the Indian market (2.32%).


Stability and Growth of Payments

Stable Dividend: 500510's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500510's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), 500510's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500510's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

SNS Subrahmanyan (60 yo)

3.17yrs

Tenure

₹271,790,000

Compensation

Mr. Sekharipuram Narayanan Subrahmanyan, also known as SNS, has been Chief Executive Officer and Managing Director of Larsen & Toubro Limited since July 1, 2017. Mr. Subrahmanyan serves as Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: SNS's total compensation ($USD3.69M) is above average for companies of similar size in the Indian market ($USD1.36M).

Compensation vs Earnings: SNS's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sekharipuram Subrahmanyan
CEO, MD & Whole Time Director3.17yrs₹271.79m0.019%
₹ 236.2m
Ramamurthi Raman
CFO & Whole-Time Director8.92yrs₹132.07m0.023%
₹ 292.2m
A. Nair
Executive VP0.67yr₹13.57m0.00023%
₹ 2.9m
Dip Sen
Senior EVP of Development Projects & Whole-Time Director4.92yrs₹44.69m0.0033%
₹ 41.0m
M. Satish
Senior EVP of Buildings4.67yrs₹57.79m0.0070%
₹ 87.7m
Jayant Patil
Senior EVP of Defense & Smart Technologies and Whole-Time Director3.17yrs₹50.86m0.012%
₹ 154.8m
Marnix Coomans
Technical Headno datano datano data
Bahadur Hitendra
Head of Administrationno datano datano data
Arnob Mondal
Vice President of Corporate Account & Investor Relationsno datano data0.000070%
₹ 874.0k
Kumar Hemant
Group General Counselno datano datano data
K. Abdurabb
Head of Media Relationsno datano datano data
SPS Jeevanand
Head of HRno datano datano data

3.9yrs

Average Tenure

62.5yo

Average Age

Experienced Management: 500510's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sekharipuram Subrahmanyan
CEO, MD & Whole Time Director3.17yrs₹271.79m0.019%
₹ 236.2m
Ramamurthi Raman
CFO & Whole-Time Director8.92yrs₹132.07m0.023%
₹ 292.2m
Dip Sen
Senior EVP of Development Projects & Whole-Time Director4.92yrs₹44.69m0.0033%
₹ 41.0m
M. Satish
Senior EVP of Buildings4.67yrs₹57.79m0.0070%
₹ 87.7m
Jayant Patil
Senior EVP of Defense & Smart Technologies and Whole-Time Director3.17yrs₹50.86m0.012%
₹ 154.8m
Subramanian Sarma
Senior EVP of Energy & Whole-Time Director5.08yrsno data0.0067%
₹ 84.2m
T. Das
Senior EVP of Utilities & Whole-Time Director0.17yrno datano data
Sudhindra Desai
Senior EVP of Civil Infrastructure & Whole-Time Director0.17yrno datano data
Subodh Bhargava
Independent Director13.17yrs₹5.03m0.000080%
₹ 998.9k
Anilkumar Naik
Group Chairman7.92yrs₹61.82m0.045%
₹ 555.8m
Mukund Chitale
Independent Directorno data₹4.89m0.00017%
₹ 2.1m
Adil Zainulbhai
Independent Director6.33yrs₹3.85m0.000010%
₹ 124.9k

5.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 500510's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500510 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Larsen & Toubro Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Larsen & Toubro Limited
  • Ticker: 500510
  • Exchange: BSE
  • Founded: 1938
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹1.249t
  • Shares outstanding: 1.40b
  • Website: https://www.larsentoubro.com

Number of Employees


Location

  • Larsen & Toubro Limited
  • L&T House
  • Narottam Morarjee Marg
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTOU.FOTCPK (Pink Sheets LLC)GDR RP 1SH REG SUSUSDDec 1994
LS&TBBDL (Bourse de Luxembourg)GDR RP 1SH REG SLUUSDDec 1994
LTODLSE (London Stock Exchange)GDR RP 1SH REG SGBUSDDec 1994
LTODB (Deutsche Boerse AG)GDR RP 1SH REG SDEEURDec 1994
LTODLBATS-CHIXE (BATS 'Chi-X Europe')GDR RP 1SH REG SGBUSDDec 1994
500510BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1998
LTNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1998

Biography

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 19:16
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.