BSE:500510

Stock Analysis Report

Executive Summary

Larsen & Toubro Limited engages in the technology, engineering, construction, manufacturing, IT, and financial operations worldwide.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

-0.08%

500510

-0.5%

IN Construction

1.4%

IN Market


1 Year Return

17.6%

500510

6.2%

IN Construction

2.3%

IN Market

Return vs Industry: 500510 exceeded the Indian Construction industry which returned 6.2% over the past year.

Return vs Market: 500510 exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

500510IndustryMarket
7 Day-0.08%-0.5%1.4%
30 Day8.4%2.0%2.7%
90 Day0.9%-4.8%-1.4%
1 Year19.1%17.6%7.5%6.2%4.3%2.3%
3 Year47.5%42.0%21.2%17.1%20.9%14.9%
5 Year45.5%37.0%35.8%28.4%41.2%28.2%

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?

21.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500510 (₹1424.25) is trading above our estimate of fair value (₹562.8)

Significantly Undervalued: 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 (21.9x) compared to the Construction industry average (12.9x).

PE vs Market: 500510 is poor value based on its PE Ratio (21.9x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500510 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 500510 is overvalued based on its PB Ratio (3.2x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is Larsen & Toubro forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500510's forecast earnings growth (15.6% per year) is above the savings rate (7.6%).

Earnings vs Market: 500510's earnings (15.6% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: 500510's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500510's revenue (13.6% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 500510's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 500510's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

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

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500510's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: 500510's earnings growth over the past year (18.8%) exceeds its 5-year average (14% per year).

Earnings vs Industry: 500510 earnings growth over the past year (18.8%) exceeded the Construction industry 1.1%.


Return on Equity

High ROE: 500510's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: 500510's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 500510 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Larsen & Toubro's financial position?


Financial Position Analysis

Short Term Liabilities: 500510's short term assets (₹1,669.8B) exceeds its short term liabilities (₹1,345.9B)

Long Term Liabilities: 500510's short term assets (1,669.8B) exceeds its long term liabilities (753.4B)


Debt to Equity History and Analysis

Debt Level: 500510's debt to equity ratio (181.4%) is considered high

Reducing Debt: 500510's debt to equity ratio has reduced from 196% to 181.4% over the past 5 years.

Debt Coverage: 500510's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 500510's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

Inventory Level: 500510 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500510's debt is covered by short term assets (assets are 1.329960x debt).


Next Steps

Dividend

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

1.26%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500510's dividend (1.26%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 500510's dividend (1.26%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stable Dividend: 500510's dividends per share have been stable 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 (27.6%), 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 (28.6% payout ratio).


Next Steps

Management

What is the CEO of Larsen & Toubro's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

SNS Subrahmanyan (59yo)

2.3yrs

Tenure

₹484,540,000

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 served as the President of ...


CEO Compensation Analysis

Compensation vs. Market: SNS has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: SNS's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

62yo

Average Age

Experienced Management: 500510's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

66yo

Average Age

Experienced Board: 500510's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: 500510 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Sell₹2,948,00001 Oct 19
Sharat Bhargava
EntityIndividual
Shares2,000
Max Price₹1,474.00
Sell₹1,047,65526 Sep 19
K. Santhosh
EntityIndividual
Shares700
Max Price₹1,496.65
Sell₹1,518,65026 Sep 19
Arvindkumar Singh
EntityIndividual
Shares1,000
Max Price₹1,518.65
Sell₹3,044,51526 Sep 19
Ranjan Trivedi
EntityIndividual
Shares2,000
Max Price₹1,524.75
Sell₹8,925,24026 Sep 19
Anupam Kumar
EntityIndividual
Shares6,000
Max Price₹1,487.54
Sell₹1,069,95026 Sep 19
Ashok Sonthalia
EntityIndividual
Shares700
Max Price₹1,528.50
Sell₹1,075,19224 Sep 19
K. Santhosh
EntityIndividual
Shares701
Max Price₹1,534.00
Buy₹941,60120 Sep 19
Shashikala Verma
EntityIndividual
Shares700
Max Price₹1,374.08
Sell₹134,38020 Sep 19
Shashikala Verma
EntityIndividual
Shares100
Max Price₹1,343.80
Buy₹341,42720 Sep 19
Gagandeep Kaur
EntityIndividual
Shares250
Max Price₹1,420.00
Sell₹517,07020 Sep 19
Gagandeep Kaur
EntityIndividual
Shares370
Max Price₹1,415.70
Buy₹1,327,70320 Sep 19
Shashikala Verma
EntityIndividual
Shares1,000
Max Price₹1,374.08
Sell₹134,38020 Sep 19
Shashikala Verma
EntityIndividual
Shares100
Max Price₹1,343.80
Buy₹509,60720 Sep 19
Gagandeep Kaur
EntityIndividual
Shares370
Max Price₹1,420.00
Sell₹517,07020 Sep 19
Gagandeep Kaur
EntityIndividual
Shares370
Max Price₹1,415.70
Sell₹1,298,32307 Sep 19
Sreenivasa Vegu
EntityIndividual
Shares850
Max Price₹1,571.45
Sell₹757,04929 Aug 19
Padma Balan
EntityIndividual
Shares500
Max Price₹1,540.00
Sell₹759,88526 Aug 19
B. Lakshmi Latha
EntityIndividual
Shares500
Max Price₹1,519.77
Sell₹759,86026 Aug 19
Bhaskara Sarma
EntityIndividual
Shares500
Max Price₹1,519.72
Sell₹8,729,00019 Aug 19
Ajay Jain
EntityIndividual
Shares5,800
Max Price₹1,505.00
Buy₹3,968,23019 Aug 19
Ajay Jain
EntityIndividual
Shares2,905
Max Price₹1,366.00
Sell₹4,059,34613 Aug 19
Tamal Gupta
EntityIndividual
Shares2,750
Max Price₹1,538.49
Sell₹2,032,08202 Jul 19
S. Arunakumar
EntityIndividual
Shares1,300
Max Price₹1,563.14
Sell₹1,289,79627 Jun 19
T. Sukumar
EntityIndividual
Shares850
Max Price₹1,555.00
Sell₹1,244,35327 Jun 19
Arnob Mondal
EntityIndividual
Shares800
Max Price₹1,561.15
Sell₹3,808,27515 Jun 19
Sarvesh Soman
EntityIndividual
Shares2,500
Max Price₹1,523.31
Sell₹10,279,87915 Jun 19
Rajaram K.
EntityIndividual
Shares6,500
Max Price₹1,581.52
Sell₹1,342,23313 Jun 19
Mukesh Raval
EntityIndividual
Shares850
Max Price₹1,601.30
Sell₹2,539,44406 Jun 19
S. Arunakumar
EntityIndividual
Shares1,650
Max Price₹1,560.00
Sell₹1,255,46604 Jun 19
K Senthilnathan
EntityIndividual
Shares800
Max Price₹1,579.13
Sell₹1,101,80004 Jun 19
Ashok Sonthalia
EntityIndividual
Shares700
Max Price₹1,574.00
Sell₹1,519,74504 Jun 19
Bhaskara Sarma
EntityIndividual
Shares1,000
Max Price₹1,519.77
Sell₹1,721,12404 Jun 19
D Kumar
EntityIndividual
Shares1,100
Max Price₹1,596.36
Sell₹2,335,50004 Jun 19
Antony Cyriac
EntityIndividual
Shares1,500
Max Price₹1,557.00
Sell₹4,289,87403 Jun 19
Shailendra Roy
EntityIndividual
Role
Member of the Board of Directors
Senior EVP of Power & Whole Time Director
Shares2,750
Max Price₹1,595.00
Sell₹1,094,53828 May 19
Udai Singh
EntityIndividual
Shares750
Max Price₹1,520.00
Sell₹1,103,30627 May 19
A. Kumar
EntityIndividual
Shares797
Max Price₹1,402.84
Sell₹2,152,97227 May 19
D Kumar
EntityIndividual
Shares1,450
Max Price₹1,540.51
Sell₹7,492,78227 May 19
Sharat Bhargava
EntityIndividual
Shares5,000
Max Price₹1,548.00
Sell₹1,375,00005 Apr 19
N. Kulkarni
EntityIndividual
Shares1,000
Max Price₹1,375.00
Sell₹1,401,00030 Mar 19
M. Ramana
EntityIndividual
Shares1,000
Max Price₹1,401.00
Sell₹2,545,56028 Mar 19
M. Ramana
EntityIndividual
Shares2,000
Max Price₹1,272.78
Sell₹1,108,97622 Mar 19
Saurabh Indwar
EntityIndividual
Shares850
Max Price₹1,374.00
Sell₹2,800,00020 Mar 19
V. Risbud
EntityIndividual
Shares2,000
Max Price₹1,400.00
Sell₹1,038,17807 Mar 19
T. Kumaresan
EntityIndividual
Shares740
Max Price₹1,421.80
Sell₹1,569,30005 Mar 19
Babul Ganguly
EntityIndividual
Shares1,200
Max Price₹1,307.75
Sell₹1,252,37005 Mar 19
Ashish Nair
EntityIndividual
Shares1,000
Max Price₹1,252.37
Sell₹1,464,00419 Feb 19
S. Arunakumar
EntityIndividual
Shares1,150
Max Price₹1,303.01
Sell₹12,432,49914 Feb 19
Hasit Joshipura
EntityIndividual
Shares10,000
Max Price₹1,243.25
Sell₹5,170,13107 Feb 19
KJ Hilroy Christie
EntityIndividual
Shares4,000
Max Price₹1,309.00
Sell₹2,644,00004 Feb 19
M. Ramana
EntityIndividual
Shares2,000
Max Price₹1,322.00
Sell₹767,13016 Jan 19
S. KOTHARY
EntityIndividual
Shares562
Max Price₹1,365.00
Sell₹2,736,24316 Jan 19
C. Reddy
EntityIndividual
Shares1,996
Max Price₹1,420.00
Sell₹12,569,29110 Jan 19
S. KOTHARY
EntityIndividual
Shares9,000
Max Price₹1,403.00
Sell₹4,281,00003 Jan 19
S. KOTHARY
EntityIndividual
Shares3,000
Max Price₹1,427.00
Sell₹13,449,37031 Dec 18
Sharat Bhargava
EntityIndividual
Shares9,505
Max Price₹1,427.35
Sell₹21,317,42031 Dec 18
S. KOTHARY
EntityIndividual
Shares15,000
Max Price₹1,440.00
Sell₹1,144,12631 Dec 18
T. Sukumar
EntityIndividual
Shares800
Max Price₹1,440.00
Sell₹1,090,68220 Dec 18
P. Rajashekar
EntityIndividual
Shares800
Max Price₹1,430.00
Sell₹1,020,15018 Dec 18
K Subramanian
EntityIndividual
Shares725
Max Price₹1,488.96
Sell₹1,143,04712 Dec 18
Krishnaswamy Srinathan
EntityIndividual
Shares800
Max Price₹1,465.22
Sell₹2,555,91003 Dec 18
K. Kotwal
EntityIndividual
Shares1,800
Max Price₹1,419.95
Sell₹2,772,00030 Nov 18
Rao Nagoji
EntityIndividual
Shares2,000
Max Price₹1,386.00
Sell₹1,141,60028 Nov 18
Hazel Farro
EntityIndividual
Shares800
Max Price₹1,427.00
Sell₹1,051,50017 Nov 18
Bhaskara Sarma
EntityIndividual
Shares750
Max Price₹1,402.00
Buy₹1,011,55425 Oct 18
Jayant Patil
EntityIndividual
Role
Member of the Board of Directors
Senior EVP of Defence & L&T-NxT and Whole-Time Director
Shares840
Max Price₹1,217.81

Ownership Breakdown


Management Team

  • Ramamurthi Raman (61yo)

    CFO & Whole-Time Director

    • Tenure: 8yrs
    • Compensation: ₹250.75m
  • SNS Subrahmanyan (59yo)

    CEO, MD & Whole Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹484.54m
  • N. Hariharan

    Executive VP

    • Tenure: 0yrs
    • Compensation: ₹12.28m
  • Jayant Patil (65yo)

    Senior EVP of Defence & L&T-NxT and Whole-Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹82.23m
  • Shailendra Roy (67yo)

    Senior EVP of Power & Whole Time Director

    • Tenure: 7.6yrs
    • Compensation: ₹141.21m
  • D. Sen (63yo)

    Senior EVP of Infrastructure & Whole-Time Director

    • Tenure: 4yrs
    • Compensation: ₹69.98m
  • M. Satish (62yo)

    Senior EVP of Buildings

    • Tenure: 3.8yrs
    • Compensation: ₹93.83m
  • Kumar Hemant (62yo)

    Group General Counsel

    • Tenure: 0yrs
  • Marnix Coomans (42yo)

    Technical Head

    • Tenure: 0yrs
  • Bahadur Hitendra (63yo)

    Head of Administration

    • Tenure: 0yrs

Board Members

  • Subodh Bhargava (77yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: ₹6.53m
  • Anilkumar Naik (77yo)

    Group Chairman

    • Tenure: 7yrs
    • Compensation: ₹81.55m
  • Vikram Mehta (67yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: ₹4.44m
  • Mukund Chitale (70yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹5.07m
  • Ramamurthi Raman (61yo)

    CFO & Whole-Time Director

    • Tenure: 8yrs
    • Compensation: ₹250.75m
  • SNS Subrahmanyan (59yo)

    CEO, MD & Whole Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹484.54m
  • Jayant Patil (65yo)

    Senior EVP of Defence & L&T-NxT and Whole-Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹82.23m
  • Shailendra Roy (67yo)

    Senior EVP of Power & Whole Time Director

    • Tenure: 7.6yrs
    • Compensation: ₹141.21m
  • D. Sen (63yo)

    Senior EVP of Infrastructure & Whole-Time Director

    • Tenure: 4yrs
    • Compensation: ₹69.98m
  • M. Satish (62yo)

    Senior EVP of Buildings

    • Tenure: 3.8yrs
    • Compensation: ₹93.83m

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: ₹1.999t
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTOU.FOTCPK (Pink Sheets LLC)SPON GDR EA REPR 1 ORD REG SUSUSDDec 1994
LS&TBBDL (Bourse de Luxembourg)SPON GDR EA REPR 1 ORD REG SLUUSDDec 1994
LTODLSE (London Stock Exchange)SPON GDR EA REPR 1 ORD REG SGBUSDDec 1994
LTODB (Deutsche Boerse AG)SPON GDR EA REPR 1 ORD REG SDEEURDec 1994
LTODLBATS-CHIXE (BATS 'Chi-X Europe')SPON GDR EA REPR 1 ORD 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 the technology, engineering, construction, manufacturing, IT, and financial operations worldwide. The Infrastructure segment engineers and constructs building and factori ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:30
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.