Larsen & Toubro
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Larsen & Toubro Limited engages in the technology, engineering, construction, manufacturing, IT, and financial operations worldwide. The last earnings update was 58 days ago. More info.
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500510 Share Price and Events
7 Day Returns
1 Year Returns
500510 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Larsen & Toubro (500510) | -0.2% | 9% | -0.8% | 10% | 68.4% | 62.3% |
| IN Construction | -0.3% | 12.3% | 1.6% | -4.7% | 47.4% | 70.9% |
| IN Market | -0.3% | 6.5% | 2.8% | 3.3% | 42.8% | 75.4% |
1 Year Return vs Industry and Market
- 500510 outperformed the Construction industry which returned -4.7% over the past year.
- 500510 outperformed the Market in India which returned 3.3% over the past year.
500510 Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Larsen & Toubro
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Larsen & Toubro.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 30 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 18.6% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| Construction Unlevered Beta | Simply Wall St/ S&P Global | 1.02 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.015 (1 + (1- 35%) (63.19%)) |
1.289 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.29 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.289 * 8.6%) |
18.64% |
Discounted Cash Flow Calculation for BSE:500510 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Larsen & Toubro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 18.64%) |
|
|---|---|---|---|
| 2019 | -24,601.27 | Analyst x11 | -20,736.24 |
| 2020 | 28,228.35 | Analyst x17 | 20,055.36 |
| 2021 | 80,742.25 | Analyst x12 | 48,352.41 |
| 2022 | 133,121.74 | Est @ 64.87% | 67,195.27 |
| 2023 | 196,588.49 | Est @ 47.68% | 83,641.20 |
| 2024 | 266,648.71 | Est @ 35.64% | 95,625.58 |
| 2025 | 339,208.10 | Est @ 27.21% | 102,535.27 |
| 2026 | 411,503.94 | Est @ 21.31% | 104,846.39 |
| 2027 | 482,217.55 | Est @ 17.18% | 103,560.69 |
| 2028 | 551,145.39 | Est @ 14.29% | 99,767.83 |
| Present value of next 10 years cash flows | ₹704,843.76 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹551,145.39 × (1 + 7.55%) ÷ (18.64% – 7.55%) |
₹5,345,437.71 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹5,345,437.71 ÷ (1 + 18.64%)10 |
₹967,626.22 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹704,843.76 + ₹967,626.22 |
₹1,672,469.98 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹1,672,469.98 / 1,402.62 |
₹1192.39 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹1,192.39 |
| Current discount | Discount to share price of
₹1,394.00
= -1 x (₹1,394.00 - ₹1,192.39) / ₹1,192.39 |
-16.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Larsen & Toubro is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Larsen & Toubro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Larsen & Toubro's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in INR | ₹61.74 |
| BSE:500510 Share Price ** | BSE (2019-03-22) in INR | ₹1394 |
| India Construction Industry PE Ratio | Median Figure of 86 Publicly-Listed Construction Companies | 15.59x |
| India Market PE Ratio | Median Figure of 2,730 Publicly-Listed Companies | 16.29x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Larsen & Toubro.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:500510 Share Price ÷ EPS (both in INR) = 1394 ÷ 61.74 |
22.58x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Larsen & Toubro is overvalued based on earnings compared to the IN Construction industry average.
- Larsen & Toubro is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does
Larsen & Toubro's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 22.58x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts |
14%per year |
| India Construction Industry PEG Ratio | Median Figure of 27 Publicly-Listed Construction Companies | 1.06x |
| India Market PEG Ratio | Median Figure of 595 Publicly-Listed Companies | 1.29x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 22.58x ÷ 14% |
1.61x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Larsen & Toubro is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Larsen & Toubro's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in INR | ₹401.92 |
| BSE:500510 Share Price * | BSE (2019-03-22) in INR | ₹1394 |
| India Construction Industry PB Ratio | Median Figure of 116 Publicly-Listed Construction Companies | 0.97x |
| India Market PB Ratio | Median Figure of 3,621 Publicly-Listed Companies | 1.11x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:500510 Share Price ÷ Book Value per Share (both in INR) = 1394 ÷ 401.92 |
3.47x |
* Primary Listing of Larsen & Toubro.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Larsen & Toubro is overvalued based on assets compared to the IN Construction industry average.
Value checks
We assess Larsen & Toubro's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check) Larsen & Toubro has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
500510 Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Larsen & Toubro's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- Larsen & Toubro's earnings growth is positive but not above the India market average.
- Larsen & Toubro's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:500510 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts | 14% |
| BSE:500510 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts | 11.6% |
| India Construction Industry Earnings Growth Rate | Market Cap Weighted Average | 15% |
| India Construction Industry Revenue Growth Rate | Market Cap Weighted Average | 11.7% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 18.6% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 11.9% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 1,748,343 | 120,851 | 116,276 | 26 |
| 2020-03-31 | 1,553,292 | 53,798 | 99,541 | 30 |
| 2019-03-31 | 1,392,142 | 81,828 | 88,692 | 28 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 1,383,870 | 86,544 | |
| 2018-09-30 | 1,310,332 | 81,027 | |
| 2018-06-30 | 1,253,735 | 76,921 | |
| 2018-03-31 | 1,210,226 | -100,310 | 73,699 |
| 2017-12-31 | 1,169,847 | 72,270 | |
| 2017-09-30 | 1,143,907 | 67,094 | |
| 2017-06-30 | 1,135,754 | 63,242 | |
| 2017-03-31 | 1,106,300 | 66,553 | 60,412 |
| 2016-12-31 | 1,078,329 | 62,095 | |
| 2016-09-30 | 1,074,625 | 59,375 | |
| 2016-06-30 | 1,055,753 | 52,812 | |
| 2016-03-31 | 1,019,565 | -32,396 | 42,329 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
All data from Larsen & Toubro Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 82.97 | 100.09 | 75.86 | 20.00 |
| 2020-03-31 | 71.07 | 81.50 | 66.00 | 22.00 |
| 2019-03-31 | 63.00 | 72.68 | 56.90 | 18.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2018-12-31 | 61.74 |
| 2018-09-30 | 57.82 |
| 2018-06-30 | 54.90 |
| 2018-03-31 | 52.62 |
| 2017-12-31 | 51.63 |
| 2017-09-30 | 47.94 |
| 2017-06-30 | 45.22 |
| 2017-03-31 | 43.20 |
| 2016-12-31 | 44.42 |
| 2016-09-30 | 42.49 |
| 2016-06-30 | 37.82 |
| 2016-03-31 | 30.32 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Larsen & Toubro's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Larsen & Toubro has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
500510 Past Performance
How has Larsen & Toubro performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Larsen & Toubro's year on year earnings growth rate has been positive over the past 5 years.
- Larsen & Toubro's 1-year earnings growth exceeds its 5-year average (19.8% vs 12.5%)
- Larsen & Toubro's earnings growth has not exceeded the IN Construction industry average in the past year (19.8% vs 34.1%).
Earnings and Revenue History
All data from Larsen & Toubro Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 1,383,870.40 | 86,543.60 | 275,481.90 | |
| 2018-09-30 | 1,310,331.80 | 81,027.10 | 272,485.70 | |
| 2018-06-30 | 1,253,734.90 | 76,921.00 | 259,539.20 | |
| 2018-03-31 | 1,210,225.90 | 73,698.60 | 247,061.70 | |
| 2017-12-31 | 1,169,847.00 | 72,269.80 | 235,296.70 | |
| 2017-09-30 | 1,143,906.80 | 67,094.20 | 229,764.30 | |
| 2017-06-30 | 1,135,754.00 | 63,241.70 | 211,223.10 | |
| 2017-03-31 | 1,106,300.10 | 60,412.30 | 222,488.50 | |
| 2016-12-31 | 1,078,328.90 | 62,095.00 | 167,125.20 | |
| 2016-09-30 | 1,074,625.30 | 59,374.50 | 165,728.10 | |
| 2016-06-30 | 1,055,753.10 | 52,811.90 | 163,994.10 | |
| 2016-03-31 | 1,019,565.30 | 42,328.80 | 201,859.70 | |
| 2015-12-31 | 984,842.20 | 47,065.30 | 141,287.00 | |
| 2015-09-30 | 965,028.20 | 45,382.70 | 131,704.30 | |
| 2015-06-30 | 942,689.50 | 44,041.20 | 128,119.00 | |
| 2015-03-31 | 930,591.20 | 47,648.20 | 142,265.10 | |
| 2014-12-31 | 918,958.10 | 55,222.00 | 125,443.50 | |
| 2014-09-30 | 897,803.00 | 54,591.40 | 124,205.90 | |
| 2014-06-30 | 877,517.20 | 54,103.00 | 122,500.50 | |
| 2014-03-31 | 860,179.10 | 49,020.00 | 109,486.00 | |
| 2013-03-31 | 753,488.80 | 52,056.70 | 96,447.70 | |
| 2012-03-31 | 651,286.90 | 46,936.90 | 73,605.50 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Larsen & Toubro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Larsen & Toubro used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.
- Larsen & Toubro has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Larsen & Toubro's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Larsen & Toubro has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
500510 Health
How is Larsen & Toubro's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Larsen & Toubro's finances.
The net worth of a company is the difference between its assets and liabilities.
- Larsen & Toubro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Larsen & Toubro's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Larsen & Toubro Company Filings, last reported 2 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 624,237.50 | 1,235,532.10 | 284,888.10 |
| 2018-09-30 | 624,237.50 | 1,235,532.10 | 284,888.10 |
| 2018-06-30 | 612,819.90 | 1,075,240.80 | 171,986.20 |
| 2018-03-31 | 612,819.90 | 1,075,240.80 | 171,986.20 |
| 2017-12-31 | 549,765.70 | 1,028,051.30 | 224,517.70 |
| 2017-09-30 | 549,765.70 | 1,028,051.30 | 224,517.70 |
| 2017-06-30 | 537,801.20 | 939,762.70 | 220,753.70 |
| 2017-03-31 | 537,801.20 | 939,539.50 | 193,846.80 |
| 2016-12-31 | 494,155.30 | 907,964.50 | 177,797.90 |
| 2016-09-30 | 494,155.30 | 907,964.50 | 177,797.90 |
| 2016-06-30 | 507,605.10 | 1,013,066.00 | 139,997.00 |
| 2016-03-31 | 470,732.00 | 881,354.90 | 128,841.00 |
| 2015-12-31 | 482,332.70 | 982,649.70 | 149,442.90 |
| 2015-09-30 | 482,332.70 | 982,649.70 | 149,442.90 |
| 2015-06-30 | 459,076.90 | 905,713.80 | 137,071.50 |
| 2015-03-31 | 459,076.90 | 905,707.40 | 137,071.50 |
| 2014-12-31 | 433,034.40 | 852,563.20 | 112,001.40 |
| 2014-09-30 | 433,034.40 | 852,563.20 | 112,001.40 |
| 2014-06-30 | 408,907.90 | 801,529.10 | 104,981.10 |
| 2014-03-31 | 408,907.90 | 803,303.90 | 104,832.60 |
| 2013-03-31 | 365,125.60 | 626,716.30 | 111,094.50 |
| 2012-03-31 | 311,402.40 | 471,500.80 | 106,032.00 |
- Larsen & Toubro's level of debt (197.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (190.9% vs 197.9% today).
- Operating cash flow is negative therefore debt is not well covered.
- Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
Financial health checks
We assess Larsen & Toubro's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Larsen & Toubro has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
500510 Dividends
What is Larsen & Toubro's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Larsen & Toubro
shares you are expected to receive
₹23
in your first year as a dividend.
Dividend Amount
- Larsen & Toubro's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
- Larsen & Toubro's dividend is below the markets top 25% of dividend payers in India (1.91%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
| India Construction Industry Average Dividend Yield | Market Cap Weighted Average of 49 Stocks | 1.2% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1399 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 1.9% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | 24.74 | 21.00 |
| 2020-03-31 | 21.77 | 24.00 |
| 2019-03-31 | 20.03 | 23.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-05-28 | 16.000 | 1.211 |
| 2017-05-29 | 14.000 | 1.131 |
| 2016-05-25 | 12.167 | 1.221 |
| 2015-06-01 | 10.833 | 1.172 |
| 2014-08-25 | 9.500 | 0.885 |
| 2013-05-22 | 8.222 | 1.154 |
| 2012-05-14 | 7.333 | 1.128 |
| 2011-05-19 | 6.444 | 1.044 |
| 2010-08-27 | 5.556 | 0.701 |
| 2009-08-28 | 4.667 | 0.639 |
| 2009-03-25 | 3.778 | 0.713 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Larsen & Toubro's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.9x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
Income/ dividend checks
We assess Larsen & Toubro's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Larsen & Toubro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Larsen & Toubro has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
500510 Management
CEO
| COMPENSATION | ₹318,030,000 |
| AGE | 58 |
| TENURE AS CEO | 1.7 years |
CEO Bio
Mr. S. N. Subrahmanyan has been Chief Executive Officer and Managing Director of Larsen & Toubro Limited since July 1, 2017. Mr. Subrahmanyan served as the President of Larsen & Toubro Limited since October 01, 2015 until July 1, 2017. He served as Deputy Managing Director of Larsen & Toubro Limited from October 01, 2015 to July 1, 2017. He served as Senior Executive Vice President of Construction & Infrastructure at Larsen & Toubro Limited until October 2015. He has over 30 years of experience in the infrastructure and construction industry. He joined the L&T group in 1984. He served as Senior Executive Vice President of Construction at Larsen & Toubro Limited. Mr. Subrahmanyan served as a Vice President and Head of B&F OC at Larsen & Toubro Limited - ECC Division. He started off as project planning engineer involving costing and job planning and was soon handpicked and was instrumental in developing the MIS, Budgets and Strategic Planning for ECC Division of L&T. His Key Achievements : Securing and managing EPC contracts for four major international airports in India at Bengaluru, Hyderabad, Delhi and Mumbai. He has secured a major order for construction of Salalah Airport at Oman which is once again one of the largest international orders for L&T. He was instrumental in setting up the Ready Mix Concrete business for ECC. He has bagged many prestigious orders for construction of landmark buildings like ICICI and National Stock Exchange buildings at Bandra-Kurla, Safal Fruit & Vegetable Market - Bengaluru, TIDEL Park-Chennai including many IT and hospital building projects. On the developmental projects side, he lead a team which conceptualised and implemented projects like HITEC City & HITEX Exhibition Centre at Hyderabad, CR2 - India's first Commercial Complex and Car Park at Mumbai and Bengaluru International Airport Limited - India's first Public Private Partnership Airport. He serves as Chairman of L&T Metro Rail (Hyderabad) Limited. He has been Non Executive Vice Chairman of Larsen & Toubro Infotech Limited since May 4, 2017. He has been Non-Executive Director at Larsen & Toubro Infotech Limited since January 10, 2015. He serves as Director of Larsen & Toubro (Oman) L.L.C. He has been a Whole-time Director at Larsen & Toubro Limited since July 01, 2011. He also serves as Director of L&T Buildings & Factories Independent Company, L&T Technology Services Limited and L&T Infrastructure Independent Company. He served as Director of Kempegowda International Airport Limited. He is a Member of the Board of Governors of the National Institute of Construction Management and Research and Governing Council of the Construction Skill Development Council of India. He was the Chairman of the CII Gulf Committee for the Financial Year 2012 and was a member of the Working Committee, Projects Exports Promotion Council. Mr. Subrahmanyan was awarded the “Leadership Award” by the Qatar Contractors Forum in 2014. He was ranked 36th in the “2014 Construction Week Power 100” in the global construction sector in a survey by international publication the Construction Week, in its issue dated June 22, 2014. In 2012, he was awarded with the “Outstanding Contribution to Industry (Infrastructure)” by the Construction Week Magazine. He has obtained a graduate degree in civil engineering from the Kurukshetra University, Haryana and has completed a post-graduate course in business administration from Symbiosis Institute of Business Management, Pune. He also undergone the Executive Management Programme from London Business School. Mr. Subrahmanyan is a Fellow of the Institution of Civil Engineers- United Kingdom.
CEO Compensation
- S.'s compensation has increased by more than 20% in the past year.
- S.'s remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the Larsen & Toubro management team in years:
- The tenure for the Larsen & Toubro management team is about average.
Management Team
S. Subrahmanyan
CEO, MD & Whole Time Director
₹318M
58
1.7 yrs
Ramamurthi Raman
CFO & Whole-Time Director
₹172M
60
7.5 yrs
N. Hariharan
Executive VP
₹12M
Shailendra Roy
Senior EVP of Power
₹121M
66
3.4 yrs
D. Sen
Senior EVP of Infrastructure & Whole-Time Director
₹81M
62
3.4 yrs
M. Satish
Senior EVP of Buildings
₹74M
61
3.1 yrs
Jayant Patil
Senior EVP of Defence Business & Whole-Time Director
₹40M
64
1.7 yrs
Marnix Coomans
Technical Head
41
Bahadur Hitendra
Head of Administration
62
Kumar Hemant
Group General Counsel
61
Board of Directors Tenure
Average tenure and age of the Larsen & Toubro board of directors in years:
- The tenure for the Larsen & Toubro board of directors is about average.
Board of Directors
Anilkumar Naik
Group Chairman
₹1B
76
6.4 yrs
S. Subrahmanyan
CEO, MD & Whole Time Director
₹318M
58
7.7 yrs
Ramamurthi Raman
CFO & Whole-Time Director
₹172M
60
7.4 yrs
Shailendra Roy
Senior EVP of Power
₹121M
66
7 yrs
D. Sen
Senior EVP of Infrastructure & Whole-Time Director
₹81M
62
3.4 yrs
M. Satish
Senior EVP of Buildings
₹74M
61
3.2 yrs
Jayant Patil
Senior EVP of Defence Business & Whole-Time Director
₹40M
64
1.7 yrs
Subodh Bhargava
Independent Director
₹5M
76
11.7 yrs
Mukund Chitale
Independent Director
₹4M
69
Vikram Mehta
Independent Director
₹3M
66
6.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 22. Mar 19 | Sell | Saurabh Indwar | Individual | 04. Jan 19 | 20. Mar 19 | -850 | ₹1,374.00 | ₹-1,108,976 | ||
| 20. Mar 19 | Sell | V. Risbud | Individual | 15. Mar 19 | 15. Mar 19 | -2,000 | ₹1,400.00 | ₹-2,800,000 | ||
| 07. Mar 19 | Sell | T. Kumaresan | Individual | 13. Dec 18 | 18. Dec 18 | -740 | ₹1,421.80 | ₹-1,038,178 | ||
| 05. Mar 19 | Sell | Ashish Nair | Individual | 12. Feb 19 | 12. Feb 19 | -1,000 | ₹1,252.37 | ₹-1,252,370 | ||
| 05. Mar 19 | Sell | Babul Ganguly | Individual | 05. Feb 19 | 05. Feb 19 | -1,200 | ₹1,307.75 | ₹-1,569,300 | ||
| 19. Feb 19 | Sell | S. Arunakumar | Individual | 30. Jan 19 | 18. Feb 19 | -1,150 | ₹1,303.01 | ₹-1,464,004 | ||
| 14. Feb 19 | Sell | Hasit Joshipura | Individual | 11. Feb 19 | 11. Feb 19 | -10,000 | ₹1,243.25 | ₹-12,432,499 | ||
| 07. Feb 19 | Sell | KJ Hilroy Christie | Individual | 30. Jan 19 | 31. Jan 19 | -4,000 | ₹1,309.00 | ₹-5,170,131 | ||
| 04. Feb 19 | Sell | M. Ramana | Individual | 01. Feb 19 | 01. Feb 19 | -2,000 | ₹1,322.00 | ₹-2,644,000 | ||
| 16. Jan 19 | Sell | C. Reddy | Individual | 08. Aug 18 | 13. Dec 18 | -1,996 | ₹1,420.00 | ₹-2,736,243 | ||
| 16. Jan 19 | Sell | S. KOTHARY | Individual | 11. Jan 19 | 11. Jan 19 | -562 | ₹1,365.00 | ₹-767,130 | ||
| 10. Jan 19 | Sell | S. KOTHARY | Individual | 03. Jan 19 | 07. Jan 19 | -9,000 | ₹1,403.00 | ₹-12,569,291 | ||
| 03. Jan 19 | Sell | S. KOTHARY | Individual | 02. Jan 19 | 02. Jan 19 | -3,000 | ₹1,427.00 | ₹-4,281,000 | ||
| 31. Dec 18 | Sell | S. KOTHARY | Individual | 20. Dec 18 | 28. Dec 18 | -15,000 | ₹1,440.00 | ₹-21,317,420 | ||
| 31. Dec 18 | Sell | Sharat Bhargava | Individual | 26. Dec 18 | 27. Dec 18 | -9,505 | ₹1,427.35 | ₹-13,449,370 | ||
| 31. Dec 18 | Sell | T. Sukumar | Individual | 27. Dec 18 | 28. Dec 18 | -800 | ₹1,440.00 | ₹-1,144,126 | ||
| 20. Dec 18 | Sell | P. Rajashekar | Individual | 09. Nov 18 | 18. Dec 18 | -800 | ₹1,430.00 | ₹-1,090,682 | ||
| 18. Dec 18 | Sell | K Subramanian | Individual | 19. Nov 18 | 10. Dec 18 | -725 | ₹1,488.96 | ₹-1,020,150 | ||
| 12. Dec 18 | Sell | Krishnaswamy Srinathan | Individual | 29. Nov 18 | 07. Dec 18 | -800 | ₹1,465.22 | ₹-1,143,047 | ||
| 07. Dec 18 | Sell | J. Chattopadhyay | Individual | 02. Jul 18 | 24. Aug 18 | -1,903 | ₹1,344.20 | ₹-2,550,784 | ||
| 03. Dec 18 | Sell | K. Kotwal | Individual | 29. Nov 18 | 29. Nov 18 | -1,800 | ₹1,419.95 | ₹-2,555,910 | ||
| 30. Nov 18 | Sell | Rao Nagoji | Individual | 13. Nov 18 | 13. Nov 18 | -2,000 | ₹1,386.00 | ₹-2,772,000 | ||
| 28. Nov 18 | Sell | Hazel Farro | Individual | 26. Nov 18 | 26. Nov 18 | -800 | ₹1,427.00 | ₹-1,141,600 | ||
| 17. Nov 18 | Sell | Bhaskara Sarma | Individual | 15. Nov 18 | 15. Nov 18 | -750 | ₹1,402.00 | ₹-1,051,500 | ||
| 25. Oct 18 | Buy | Jayant Patil | Individual | 08. Oct 18 | 23. Oct 18 | 840 | ₹1,217.81 | ₹1,011,554 | ||
| 28. Sep 18 | Buy | Jayant Patil | Individual | 11. Sep 18 | 24. Sep 18 | 1,000 | ₹1,332.01 | ₹1,320,672 | ||
| 29. Sep 18 | Sell | M. Ramana | Individual | 26. Sep 18 | 26. Sep 18 | -5,000 | ₹1,311.31 | ₹-6,556,550 | ||
| 11. Sep 18 | Sell | Kaushik Dey | Individual | 31. Aug 18 | 31. Aug 18 | -1,800 | ₹1,362.82 | ₹-2,453,076 | ||
| 07. Sep 18 | Sell | T. Sukumar | Individual | 04. Jul 18 | 21. Aug 18 | -900 | ₹1,325.00 | ₹-1,172,865 | ||
| 11. Aug 18 | Sell | Sharat Bhargava | Individual | 07. Aug 18 | 07. Aug 18 | -750 | ₹1,300.00 | ₹-975,000 | ||
| 11. Aug 18 | Sell | Sharat Bhargava | Individual | 07. Aug 18 | 08. Aug 18 | -1,450 | ₹1,305.00 | ₹-1,888,642 | ||
| 13. Jul 18 | Sell | Sarvesh Soman | Individual | 17. Apr 18 | 17. Apr 18 | -6,000 | ₹1,350.00 | ₹-8,100,000 | ||
| 18. May 18 | Sell | S. Arunakumar | Individual | 18. Apr 18 | 15. May 18 | -1,150 | ₹1,415.17 | ₹-1,613,125 | ||
| 25. Apr 18 | Sell | Manas Mukherjee | Individual | 23. Apr 18 | 23. Apr 18 | -1,000 | ₹1,367.22 | ₹-1,367,220 | ||
| 26. Jun 18 | Sell | K. Cion | Individual | 20. Jun 18 | 21. Jun 18 | -4,000 | ₹1,296.88 | ₹-5,180,545 | ||
| 18. Jun 18 | Sell | K. Cion | Individual | 14. Jun 18 | 14. Jun 18 | -1,000 | ₹1,356.24 | ₹-1,356,240 | ||
| 15. Jun 18 | Sell | I. Chandran | Individual | 08. May 18 | 08. May 18 | -2,700 | ₹1,365.01 | ₹-3,685,527 | ||
| 15. Jun 18 | Sell | Ram Mukhija | Individual | 13. Jun 18 | 13. Jun 18 | -2,948 | ₹1,366.30 | ₹-4,027,852 | ||
| 16. May 18 | Sell | Saurabh Indwar | Individual | 05. Apr 18 | 15. May 18 | -800 | ₹1,428.19 | ₹-1,122,457 | ||
| 11. May 18 | Sell | Pushpraj Mengde | Individual | 13. Apr 18 | 09. May 18 | -1,240 | ₹1,365.44 | ₹-1,693,144 | ||
| 17. Apr 18 | Sell | Radhika Choudhari | Individual | 02. Apr 18 | 12. Apr 18 | -1,350 | ₹1,351.10 | ₹-1,813,262 | ||
| 25. Apr 18 | Sell | S. Manjunatha | Individual | 05. Apr 18 | 19. Apr 18 | -1,100 | ₹1,378.55 | ₹-1,496,785 | ||
| 25. Apr 18 | Sell | Radhika Choudhari | Individual | 23. Apr 18 | 23. Apr 18 | -1,000 | ₹1,362.00 | ₹-1,362,000 | ||
| 12. Apr 18 | Sell | Anjan Datta | Individual | 10. Apr 18 | 10. Apr 18 | -1,000 | ₹1,349.80 | ₹-1,349,800 | ||
| 27. Mar 18 | Sell | A. Kumar | Individual | 07. Feb 18 | 26. Mar 18 | -1,300 | ₹1,370.47 | ₹-1,695,879 | ||
Management checks
We assess Larsen & Toubro's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Larsen & Toubro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
500510 Company Info
Description
Larsen & Toubro Limited engages in the technology, engineering, construction, manufacturing, IT, and financial operations worldwide. The Infrastructure segment constructs buildings and factories, transportation and heavy civil infrastructure, power transmission and distribution, water, smart world, and communications projects. The Power segment offers coal and gas-based thermal power plants turnkey solutions, including power generation equipment. The Heavy Engineering segment offers custom designed and engineered equipment and systems for industries, such as fertilizer, refinery, petrochemical, chemical, oil and gas, thermal and nuclear power, aerospace, and defense. The Electrical & Automation segment manufactures and sells low and medium voltage switchgear components, custom built low and medium voltage switchboards, and electronic energy meters/protection systems, as well as control and automation products. The Hydrocarbon segment provides EPC solutions for the oil and gas Industry from front-end design through detailed engineering, modular fabrication, procurement, project management, construction, installation, and commissioning services. The IT & Technology Services segment offers information technology and integrated engineering services. The Financial Services segment provides retail, housing, and wholesale finance; and mutual fund and wealth management services. The Developmental Projects segment is involved in the basic infrastructure projects; toll and fare collection; power development; development and operation of port facilities; and providing related advisory services. The Others segment engages in the metallurgical and material handling systems; realty; shipbuilding; industrial valves; welding and cutting equipment; construction equipment; mining machinery; rubber processing machinery and castings; and mining and aviation businesses. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.
Details
| Name: | Larsen & Toubro Limited |
| 500510 | |
| Exchange: | BSE |
| Founded: | 1938 |
| ₹1,955,258,649,186 | |
| 1,402,624,569 | |
| Website: | http://www.larsentoubro.com |
| Address: |
Larsen & Toubro Limited L&T House, N.M. Marg, Mumbai, Maharashtra, 400001, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 500510 | Equity Shares | Mumbai Stock Exchange | IN | INR | 02. Feb 1998 | |
| NSEI | LT | Equity Shares | National Stock Exchange of India | IN | INR | 02. Feb 1998 | |
| LSE | LTOD | GDS-EACH REPR 1 ORD INR2 REG'S' | London Stock Exchange | GB | USD | 07. Dec 1994 | |
| OTCPK | LTOU.F | GDS-EACH REPR 1 ORD INR2 REG'S' | Pink Sheets LLC | US | USD | 07. Dec 1994 | |
| DB | LTO | GDS-EACH REPR 1 ORD INR2 REG'S' | Deutsche Boerse AG | DE | EUR | 07. Dec 1994 | |
| BDL | LS&TB | GDS-EACH REPR 1 ORD INR2 REG'S' | Bourse de Luxembourg | LU | USD | 07. Dec 1994 | |
| BATS-CHIXE | LTODL | GDS-EACH REPR 1 ORD INR2 REG'S' | BATS 'Chi-X Europe' | GB | USD | 07. Dec 1994 |
Number of employees
Current staff
Industry
| Construction and Engineering | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/24 12:30 |
| End of day share price update: | 2019/03/22 00:00 |
| Last estimates confirmation: | 2019/03/20 |
| Last earnings filing: | 2019/01/25 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
