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LT

Larsen & Toubro NSEI:LT Stock Report

Last Price

₹1.55k

Market Cap

₹2.2t

7D

3.4%

1Y

2.7%

Updated

28 Jun, 2022

Data

Company Financials +
LT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends4/6

LT Stock Overview

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

Larsen & Toubro Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Larsen & Toubro
Historical stock prices
Current Share Price₹1,551.50
52 Week High₹2,078.55
52 Week Low₹1,456.35
Beta0.77
1 Month Change-3.05%
3 Month Change-12.52%
1 Year Change2.69%
3 Year Change-0.79%
5 Year Change38.25%
Change since IPO2,095.69%

Recent News & Updates

Jun 28
Is Larsen & Toubro (NSE:LT) Using Too Much Debt?

Is Larsen & Toubro (NSE:LT) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

LTIN ConstructionIN Market
7D3.4%3.6%1.8%
1Y2.7%-2.8%0.6%

Return vs Industry: LT exceeded the Indian Construction industry which returned -3.7% over the past year.

Return vs Market: LT exceeded the Indian Market which returned -0% over the past year.

Price Volatility

Is LT's price volatile compared to industry and market?
LT volatility
LT Average Weekly Movement4.1%
Construction Industry Average Movement7.1%
Market Average Movement7.0%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: LT is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LT's weekly volatility (4%) 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?
LT fundamental statistics
Market Cap₹2.18t
Earnings (TTM)₹85.72b
Revenue (TTM)₹1.59t

25.4x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LT income statement (TTM)
Revenue₹1.59t
Cost of Revenue₹937.86b
Gross Profit₹590.50b
Other Expenses₹504.77b
Earnings₹85.72b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)61.01
Gross Margin37.19%
Net Profit Margin5.40%
Debt/Equity Ratio129.5%

How did LT perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

36%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA15x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

LT PE Ratio vs Peers
The above table shows the PE ratio for LT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.1x
VOLTAS Voltas
64.1x21.7%₹323.0b
IRB IRB Infrastructure Developers
35.4x38.7%₹127.8b
532714 KEC International
32.1x30.2%₹106.7b
543317 G R Infraprojects
13xn/a₹107.8b
LT Larsen & Toubro
25.4x17.9%₹2.2t

Price-To-Earnings vs Peers: LT is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (36.1x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: LT is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the Indian Construction industry average (16.6x)


Price to Earnings Ratio vs Fair Ratio

What is LT'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.

LT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio35.9x

Price-To-Earnings vs Fair Ratio: LT is good value based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).


Share Price vs Fair Value

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

Below Fair Value: LT (₹1551.5) is trading above our estimate of fair value (₹577.67)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LT's forecast earnings growth (17.9% per year) is above the savings rate (6.7%).

Earnings vs Market: LT's earnings (17.9% per year) are forecast to grow faster than the Indian market (17.4% per year).

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

Revenue vs Market: LT's revenue (11.2% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: LT's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LT's Return on Equity is forecast to be low in 3 years time (15.1%).


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LT has high quality earnings.

Growing Profit Margin: LT's current net profit margins (5.4%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: LT's earnings have declined by 5.4% per year over the past 5 years.

Accelerating Growth: LT's earnings growth over the past year (156.3%) exceeds its 5-year average (-5.4% per year).

Earnings vs Industry: LT earnings growth over the past year (156.3%) exceeded the Construction industry 33.4%.


Return on Equity

High ROE: LT's Return on Equity (10.8%) is considered low.


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Financial Health

How is Larsen & Toubro's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LT's short term assets (₹2,081.8B) exceed its short term liabilities (₹1,594.3B).

Long Term Liabilities: LT's short term assets (₹2,081.8B) exceed its long term liabilities (₹652.4B).


Debt to Equity History and Analysis

Debt Level: LT's net debt to equity ratio (78.3%) is considered high.

Reducing Debt: LT's debt to equity ratio has reduced from 174.7% to 129.5% over the past 5 years.

Debt Coverage: LT's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: LT's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LT's dividend (1.42%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: LT's dividend (1.42%) is low compared to the top 25% of dividend payers in the Indian market (1.87%).


Stability and Growth of Payments

Stable Dividend: LT's dividend payments have been volatile in the past 10 years.

Growing Dividend: LT's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.1%), LT's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.3%), LT's dividend payments are well covered by cash flows.


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Management

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

4.9yrs

Average management tenure


CEO

SNS Subrahmanyan (61 yo)

4.92yrs

Tenure

₹285,000,000

Compensation

Mr. Sekharipuram Narayanan Subrahmanyan, also known as SNS, serves as Additional Non-Executive Director & Chairman of the Board of L&T Finance Holdings Limited since February 28, 2022, where he is responsi...


CEO Compensation Analysis

Compensation vs Market: SNS's total compensation ($USD3.63M) is above average for companies of similar size in the Indian market ($USD1.20M).

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


Leadership Team

Experienced Management: LT's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: LT's board of directors are considered experienced (6.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LT insiders have bought more shares than they have sold 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: LT
  • Exchange: NSEI
  • Founded: 1938
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: ₹2.180t
  • Shares outstanding: 1.41b
  • 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 Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.