Larsen & Toubro Limited

BSE:500510 Stock Report

Market Cap: ₹4.6t

Larsen & Toubro Valuation

Is 500510 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500510 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹2.34k
Fair Value
43.5% overvalued intrinsic discount
35
Number of Analysts

Below Fair Value: 500510 (₹3352.9) is trading above our estimate of fair value (₹2337.23)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500510?

Key metric: As 500510 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500510. This is calculated by dividing 500510's market cap by their current earnings.
What is 500510's PE Ratio?
PE Ratio33.3x
Earnings₹138.42b
Market Cap₹4.61t

Price to Earnings Ratio vs Peers

How does 500510's PE Ratio compare to its peers?

The above table shows the PE ratio for 500510 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.9x
RVNL Rail Vikas Nigam
62.3x10.5%₹840.4b
VOLTAS Voltas
62.4x19.5%₹447.3b
IRB IRB Infrastructure Developers
5x-59.5%₹325.9b
534309 NBCC (India)
53.8x18.2%₹254.9b
500510 Larsen & Toubro
33.3x22.4%₹4.6t

Price-To-Earnings vs Peers: 500510 is good value based on its Price-To-Earnings Ratio (33.3x) compared to the peer average (45.9x).

Price to Earnings Ratio vs Industry

How does 500510's PE Ratio compare vs other companies in the IN Construction Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCCL Consolidated Construction Consortium
0.4xn/aUS$65.52m
533152 MBL Infrastructures
2.5xn/aUS$64.36m
ATLANTAA Atlantaa
2xn/aUS$38.60m
KAUSHALYA Kaushalya Infrastructure Development
1.9xn/aUS$3.80m
500510 33.3xIndustry Avg. 24.0xNo. of Companies23PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500510 is expensive based on its Price-To-Earnings Ratio (33.3x) compared to the Indian Construction industry average (24x).

Price to Earnings Ratio vs Fair Ratio

What is 500510's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500510 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.3x
Fair PE Ratio53.9x

Price-To-Earnings vs Fair Ratio: 500510 is good value based on its Price-To-Earnings Ratio (33.3x) compared to the estimated Fair Price-To-Earnings Ratio (53.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500510 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,352.90
₹4,109.40
+22.6%
7.8%₹4,600.00₹2,946.00n/a35
Jan ’26₹3,667.20
₹4,058.44
+10.7%
8.0%₹4,600.00₹2,946.00n/a34
Dec ’25₹3,725.90
₹4,037.18
+8.4%
7.8%₹4,550.00₹2,946.00n/a33
Nov ’25₹3,626.30
₹4,041.06
+11.4%
7.9%₹4,550.00₹2,946.00n/a33
Oct ’25₹3,651.50
₹3,998.34
+9.5%
8.0%₹4,550.00₹2,946.00n/a32
Sep ’25₹3,703.10
₹3,993.88
+7.9%
7.6%₹4,390.00₹2,946.00n/a34
Aug ’25₹3,776.40
₹4,002.77
+6.0%
7.7%₹4,396.00₹2,946.00n/a35
Jul ’25₹3,527.65
₹3,904.79
+10.7%
8.7%₹4,396.00₹2,781.00n/a34
Jun ’25₹3,667.40
₹3,856.18
+5.1%
8.8%₹4,396.00₹2,781.00n/a34
May ’25₹3,594.15
₹3,960.68
+10.2%
11.7%₹4,410.00₹1,921.00n/a34
Apr ’25₹3,836.85
₹3,929.67
+2.4%
11.7%₹4,400.00₹1,874.00n/a33
Mar ’25₹3,634.50
₹3,920.85
+7.9%
11.6%₹4,400.00₹1,874.00n/a33
Feb ’25₹3,397.20
₹3,870.23
+13.9%
13.1%₹4,400.00₹1,874.00₹3,447.3030
Jan ’25₹3,522.35
₹3,282.84
-6.8%
12.2%₹4,000.00₹1,854.00₹3,667.2031
Dec ’24₹3,189.95
₹3,215.13
+0.8%
11.6%₹3,600.00₹1,854.00₹3,725.9031
Nov ’24₹2,894.35
₹3,160.47
+9.2%
12.3%₹3,600.00₹1,854.00₹3,626.3032
Oct ’24₹3,021.95
₹2,905.44
-3.9%
10.6%₹3,600.00₹1,921.00₹3,651.5034
Sep ’24₹2,701.30
₹2,815.34
+4.2%
8.6%₹3,080.00₹1,721.00₹3,703.1035
Aug ’24₹2,666.15
₹2,807.50
+5.3%
8.6%₹3,080.00₹1,721.00₹3,776.4036
Jul ’24₹2,474.50
₹2,559.44
+3.4%
8.9%₹2,900.00₹1,666.00₹3,527.6534
Jun ’24₹2,209.05
₹2,537.31
+14.9%
8.9%₹2,900.00₹1,666.00₹3,667.4035
May ’24₹2,364.75
₹2,472.51
+4.6%
8.7%₹2,827.00₹1,520.00₹3,594.1535
Apr ’24₹2,164.75
₹2,421.71
+11.9%
8.6%₹2,827.00₹1,520.00₹3,836.8535
Mar ’24₹2,114.95
₹2,400.25
+13.5%
8.3%₹2,770.00₹1,520.00₹3,634.5036
Feb ’24₹2,144.55
₹2,376.92
+10.8%
8.6%₹2,650.00₹1,520.00₹3,397.2036
Analyst Price Target
Consensus Narrative from 35 Analysts
₹4.11k
Fair Value
18.4% undervalued intrinsic discount
35
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 05:35
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Larsen & Toubro Limited is covered by 81 analysts. 34 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Dhruv JainAmbit Capital
null nullAnand Rathi Shares and Stock Brokers Limited