Larsen & Toubro Limited

BSE:500510 Stock Report

Market Cap: ₹4.8t

Larsen & Toubro Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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.

Below Fair Value: 500510 (₹3482.5) is trading above our estimate of fair value (₹2033.03)

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 Ratio35.6x
Earnings₹134.31b
Market Cap₹4.82t

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 Average68.2x
RVNL Rail Vikas Nigam
65.3x10.5%₹901.0b
VOLTAS Voltas
100x27.7%₹558.1b
KEC KEC International
62.6x38.8%₹264.9b
IRB IRB Infrastructure Developers
44.9x29.1%₹286.4b
500510 Larsen & Toubro
35.6x20.0%₹4.8t

Price-To-Earnings vs Peers: 500510 is good value based on its Price-To-Earnings Ratio (35.6x) compared to the peer average (68.2x).

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
0.9xn/aUS$78.85m
533152 MBL Infrastructures
2.6xn/aUS$68.54m
ATLANTAA Atlantaa
2.5xn/aUS$50.21m
SKIL SKIL Infrastructure
0.1xn/aUS$14.33m
500510 35.6xIndustry Avg. 25.8xNo. of Companies22PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500510 is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the Indian Construction industry average (25.8x).

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 Ratio35.6x
Fair PE Ratio58.8x

Price-To-Earnings vs Fair Ratio: 500510 is good value based on its Price-To-Earnings Ratio (35.6x) compared to the estimated Fair Price-To-Earnings Ratio (58.8x).

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₹3,482.50
₹4,037.18
+15.9%
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₹1,874.00n/a30
Jan ’25₹3,522.35
₹3,282.84
-6.8%
12.2%₹4,000.00₹1,854.00n/a31
Dec ’24₹3,189.95
₹3,215.13
+0.8%
11.6%₹3,600.00₹1,854.00n/a31
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
Jan ’24₹2,086.30
₹2,272.08
+8.9%
8.5%₹2,500.00₹1,420.00₹3,522.3536
Dec ’23₹2,103.60
₹2,237.94
+6.4%
8.9%₹2,465.00₹1,420.00₹3,189.9534
Nov ’23₹2,024.85
₹2,211.88
+9.2%
8.9%₹2,455.00₹1,420.00₹2,894.3533

Analyst Forecast: Target price is less than 20% higher than the current share price.

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