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5005

Larsen & ToubroBSE:500510 Stock Report

Last Price

₹1.95k

Market Cap

₹2.7t

7D

-4.4%

1Y

43.4%

Updated

23 Jan, 2022

Data

Company Financials +
500510 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends4/6

500510 Stock Overview

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

Larsen & Toubro Competitors

KEC International

BSE:532714

₹127.5b

Kalpataru Power Transmission

BSE:522287

₹60.2b

Engineers India

NSEI:ENGINERSIN

₹39.1b

Power Mech Projects

BSE:539302

₹14.2b

Price History & Performance

Summary of all time highs, changes and price drops for Larsen & Toubro
Historical stock prices
Current Share Price₹1,954.55
52 Week High₹2,078.20
52 Week Low₹1,306.40
Beta0.77
1 Month Change5.11%
3 Month Change9.61%
1 Year Change43.39%
3 Year Change52.04%
5 Year Change103.65%
Change since IPO4,529.20%

Recent News & Updates

Shareholder Returns

500510IN ConstructionIN Market
7D-4.4%-4.2%-3.4%
1Y43.4%43.4%32.6%

Return vs Industry: 500510 matched the Indian Construction industry which returned 43.4% over the past year.

Return vs Market: 500510 exceeded the Indian Market which returned 32.6% over the past year.

Price Volatility

Is 500510's price volatile compared to industry and market?
500510 volatility
500510 Average Weekly Movement3.3%
Construction Industry Average Movement6.9%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.0%

Stable Share Price: 500510 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 500510's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193840,253SNS Subrahmanyanhttps://www.larsentoubro.com

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and metallurgical and material handling systems. The Power segment offers turnkey solutions for coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages.

Larsen & Toubro Fundamentals Summary

How do Larsen & Toubro's earnings and revenue compare to its market cap?
500510 fundamental statistics
Market Cap₹2.75t
Earnings (TTM)₹50.16b
Revenue (TTM)₹1.51t

54.7x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500510 income statement (TTM)
Revenue₹1.51t
Cost of Revenue₹879.88b
Gross Profit₹563.36b
Expenses₹513.20b
Earnings₹50.16b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 28, 2022

Earnings per share (EPS)35.70
Gross Margin37.31%
Net Profit Margin3.32%
Debt/Equity Ratio140.2%

How did 500510 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

50%

Payout Ratio

Valuation

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

54.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500510 (₹1954.55) is trading above our estimate of fair value (₹1138.64)

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 (54.7x) compared to the Indian Construction industry average (19.1x).

PE vs Market: 500510 is poor value based on its PE Ratio (54.7x) compared to the Indian market (23x).


Price to Earnings Growth Ratio

PEG Ratio: 500510 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 500510 is overvalued based on its PB Ratio (3.6x) compared to the IN Construction industry average (1.3x).


Future Growth

How is Larsen & Toubro forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500510's forecast earnings growth (20.4% per year) is above the savings rate (6.7%).

Earnings vs Market: 500510's earnings (20.4% per year) are forecast to grow slower than the Indian market (21.3% per year).

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

Revenue vs Market: 500510's revenue (12.6% per year) is forecast to grow slower than the Indian market (12.9% per year).

High Growth Revenue: 500510's revenue (12.6% 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 (16.4%).


Past Performance

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

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500510 has a large one-off loss of ₹47.3B impacting its September 30 2021 financial results.

Growing Profit Margin: 500510's current net profit margins (3.3%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 500510's earnings have declined by 3.8% per year over the past 5 years.

Accelerating Growth: 500510's earnings growth over the past year (73.2%) exceeds its 5-year average (-3.8% per year).

Earnings vs Industry: 500510 earnings growth over the past year (73.2%) exceeded the Construction industry 21.8%.


Return on Equity

High ROE: 500510's Return on Equity (7.4%) is considered low.


Financial Health

How is Larsen & Toubro's financial position?


Financial Position Analysis

Short Term Liabilities: 500510's short term assets (₹1,910.6B) exceed its short term liabilities (₹1,375.1B).

Long Term Liabilities: 500510's short term assets (₹1,910.6B) exceed its long term liabilities (₹763.0B).


Debt to Equity History and Analysis

Debt Level: 500510's net debt to equity ratio (89.2%) is considered high.

Reducing Debt: 500510's debt to equity ratio has reduced from 183.7% to 140.2% over the past 5 years.

Debt Coverage: 500510's debt is well covered by operating cash flow (22.9%).

Interest Coverage: 500510's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500510's dividend (0.92%) is higher than the bottom 25% of dividend payers in the Indian market (0.3%).

High Dividend: 500510's dividend (0.92%) is low compared to the top 25% of dividend payers in the Indian market (1.34%).


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 reasonable payout ratio (50.4%), 500510's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500510's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

SNS Subrahmanyan (61 yo)

4.5yrs

Tenure

₹285,000,000

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 ($USD3.83M) is above average for companies of similar size in the Indian market ($USD1.20M).

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


Leadership Team

Experienced Management: 500510's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: 500510's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 500510 insiders have 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 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
  • Implied Market Cap: ₹2.746t
  • Shares outstanding: 1.40b
  • Website: https://www.larsentoubro.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 12:01
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.