Larsen & Toubro
Market Cap
₹1.9t
Last Updated
2021/01/15 12:00 UTC
Data Sources
Company Financials +
Executive Summary
Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. More Details
Rewards
Risk Analysis
+ 1 more risk
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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 500510's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
500510
-1.3%
IN Construction
-0.4%
IN Market
1 Year Return
3.8%
500510
1.6%
IN Construction
15.9%
IN Market
Return vs Industry: 500510 exceeded the Indian Construction industry which returned 2.7% over the past year.
Return vs Market: 500510 underperformed the Indian Market which returned 17.7% over the past year.
Shareholder returns
| 500510 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -1.3% | -0.4% |
| 30 Day | 6.9% | 6.0% | 5.0% |
| 90 Day | 51.5% | 41.7% | 24.4% |
| 1 Year | 8.3%3.8% | 4.8%1.6% | 18.1%15.9% |
| 3 Year | 5.6%-1.3% | -16.9%-21.0% | 9.7%4.4% |
| 5 Year | 95.0%77.9% | 52.8%42.0% | 82.3%68.5% |
Long-Term 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?
65.67x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 500510 (₹1354.6) is trading above our estimate of fair value (₹261.56)
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 (65.7x) compared to the IN Construction industry average (15.2x).
PE vs Market: 500510 is poor value based on its PE Ratio (65.7x) compared to the Indian market (19.6x).
Price to Earnings Growth Ratio
PEG Ratio: 500510 is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: 500510 is overvalued based on its PB Ratio (2.6x) compared to the IN Construction industry average (0.8x).
Next Steps
Future Growth
How is Larsen & Toubro forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
15.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 500510's forecast earnings growth (15.3% per year) is above the savings rate (7%).
Earnings vs Market: 500510's earnings (15.3% per year) are forecast to grow slower than the Indian market (25.6% per year).
High Growth Earnings: 500510's earnings are forecast to grow, but not significantly.
Revenue vs Market: 500510's revenue (14.2% per year) is forecast to grow faster than the Indian market (11.6% per year).
High Growth Revenue: 500510's revenue (14.2% 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 (13.4%).
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Past Performance
How has Larsen & Toubro performed over the past 5 years?
10.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 500510 has a large one-off loss of ₹36.2B impacting its September 30 2020 financial results.
Growing Profit Margin: 500510's current net profit margins (2.1%) are lower than last year (6.2%).
Past Earnings Growth Analysis
Earnings Trend: 500510's earnings have grown by 10.1% 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 (-69%) over the past year, making it difficult to compare to the Construction industry average (-22.7%).
Return on Equity
High ROE: 500510's Return on Equity (5.1%) 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 (₹1,930.8B) exceed its short term liabilities (₹1,345.6B).
Long Term Liabilities: 500510's short term assets (₹1,930.8B) exceed its long term liabilities (₹930.0B).
Debt to Equity History and Analysis
Debt Level: 500510's debt to equity ratio (177.7%) is considered high.
Reducing Debt: 500510's debt to equity ratio has reduced from 203.7% to 177.7% over the past 5 years.
Debt Coverage: 500510's debt is not well covered by operating cash flow (11.3%).
Interest Coverage: 500510's interest payments on its debt are well covered by EBIT (3.9x coverage).
Balance Sheet
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Dividend
What is Larsen & Toubro current dividend yield, its reliability and sustainability?
1.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 500510's dividend (1.18%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).
High Dividend: 500510's dividend (1.18%) is low compared to the top 25% of dividend payers in the Indian market (1.8%).
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 (38.8%), 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 (31.7% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
SNS Subrahmanyan (60 yo)
3.5yrs
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 ($USD3.72M) is above average for companies of similar size in the Indian market ($USD922.22K).
Compensation vs Earnings: SNS's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Whole Time Director | 3.5yrs | ₹271.79m | 0.019% ₹ 365.5m | |
| CFO & Whole-Time Director | 9.25yrs | ₹132.07m | 0.023% ₹ 452.1m | |
| Executive VP | 1yr | ₹13.57m | 0.00023% ₹ 4.4m | |
| Senior EVP of Development Projects & Whole-Time Director | 5.25yrs | ₹44.69m | 0.0033% ₹ 63.4m | |
| Senior EVP of Buildings & Whole-Time Director | 5yrs | ₹57.79m | 0.0070% ₹ 135.7m | |
| Senior EVP of Defense & Smart Technologies and Whole-Time Director | 3.5yrs | ₹50.86m | 0.012% ₹ 239.7m | |
| Technical Head | no data | no data | no data | |
| Head of Administration | no data | no data | no data | |
| Vice President of Corporate Account & Investor Relations | no data | no data | 0.000070% ₹ 1.4m | |
| Group General Counsel | no data | no data | no data | |
| Head of Media Relations | no data | no data | no data | |
| Head of HR | no data | no data | no data |
4.2yrs
Average Tenure
62.5yo
Average Age
Experienced Management: 500510's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Whole Time Director | 3.5yrs | ₹271.79m | 0.019% ₹ 365.5m | |
| CFO & Whole-Time Director | 9.25yrs | ₹132.07m | 0.023% ₹ 452.1m | |
| Senior EVP of Development Projects & Whole-Time Director | 5.25yrs | ₹44.69m | 0.0033% ₹ 63.4m | |
| Senior EVP of Buildings & Whole-Time Director | 5yrs | ₹57.79m | 0.0070% ₹ 135.7m | |
| Senior EVP of Defense & Smart Technologies and Whole-Time Director | 3.5yrs | ₹50.86m | 0.012% ₹ 239.7m | |
| Senior EVP of Energy & Whole-Time Director | 5.42yrs | no data | 0.0067% ₹ 130.3m | |
| Senior EVP of Utilities & Whole-Time Director | 0.50yr | no data | no data | |
| Senior EVP of Civil Infrastructure & Whole-Time Director | 0.50yr | no data | no data | |
| Independent Director | 13.5yrs | ₹5.03m | 0.000080% ₹ 1.5m | |
| Group Chairman | 8.25yrs | ₹61.82m | 0.044% ₹ 860.1m | |
| Independent Director | no data | ₹4.89m | 0.00017% ₹ 3.3m | |
| Independent Director | 6.67yrs | ₹3.85m | 0.000010% ₹ 193.3k |
5.4yrs
Average Tenure
63.5yo
Average Age
Experienced Board: 500510's board of directors are considered experienced (5.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 500510 insiders have sold more shares than they have bought 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: ₹1.933t
- Shares outstanding: 1.40b
- Website: https://www.larsentoubro.com
Number of Employees
Location
- Larsen & Toubro Limited
- L&T House
- N.M. Marg
- Mumbai
- Maharashtra
- 400001
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LTOU.F | OTCPK (Pink Sheets LLC) | SPON GDR EA REPR 1 ORD REG S | US | USD | Dec 1994 | |
| LS&TB | BDL (Bourse de Luxembourg) | SPON GDR EA REPR 1 ORD REG S | LU | USD | Dec 1994 | |
| LTOD | LSE (London Stock Exchange) | SPON GDR EA REPR 1 ORD REG S | GB | USD | Dec 1994 | |
| LTO | DB (Deutsche Boerse AG) | SPON GDR EA REPR 1 ORD REG S | DE | EUR | Dec 1994 | |
| LTODL | BATS-CHIXE (BATS 'Chi-X Europe') | SPON GDR EA REPR 1 ORD REG S | GB | USD | Dec 1994 | |
| 500510 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 1998 |
| LT | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 12:00 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.