Larsen & Toubro Limited

NSEI:LT Stock Report

Market Cap: ₹5.0t

Larsen & Toubro 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

  • 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 LT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LT (₹3603.5) is trading above our estimate of fair value (₹2034.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LT. This is calculated by dividing LT's market cap by their current earnings.
What is LT's PE Ratio?
PE Ratio36.9x
Earnings₹134.31b
Market Cap₹4.96t

Price to Earnings Ratio vs Peers

How does LT's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average68.4x
RVNL Rail Vikas Nigam
65x10.5%₹876.1b
VOLTAS Voltas
98.7x27.7%₹547.1b
KEC KEC International
63.1x38.8%₹266.0b
IRB IRB Infrastructure Developers
46.7x29.1%₹287.5b
LT Larsen & Toubro
36.9x20.0%₹5.0t

Price-To-Earnings vs Peers: LT is good value based on its Price-To-Earnings Ratio (36.9x) compared to the peer average (68.4x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCCL Consolidated Construction Consortium
0.9xn/aUS$77.49m
533152 MBL Infrastructures
2.5xn/aUS$67.17m
ATLANTAA Atlantaa
2.4xn/aUS$48.21m
SKIL SKIL Infrastructure
0.1xn/aUS$14.31m
LT 36.9xIndustry Avg. 25.7xNo. of Companies23PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LT is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the Indian Construction industry average (25.7x).

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 Ratio36.9x
Fair PE Ratio59.1x

Price-To-Earnings vs Fair Ratio: LT is good value based on its Price-To-Earnings Ratio (36.9x) compared to the estimated Fair Price-To-Earnings Ratio (59.1x).

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 LT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,603.50
₹4,037.18
+12.0%
7.8%₹4,550.00₹2,946.00n/a33
Nov ’25₹3,626.35
₹4,041.06
+11.4%
7.9%₹4,550.00₹2,946.00n/a33
Oct ’25₹3,653.50
₹3,998.34
+9.4%
8.0%₹4,550.00₹2,946.00n/a32
Sep ’25₹3,704.65
₹3,993.88
+7.8%
7.6%₹4,390.00₹2,946.00n/a34
Aug ’25₹3,779.30
₹4,002.77
+5.9%
7.7%₹4,396.00₹2,946.00n/a35
Jul ’25₹3,526.55
₹3,904.79
+10.7%
8.7%₹4,396.00₹2,781.00n/a34
Jun ’25₹3,669.30
₹3,856.18
+5.1%
8.8%₹4,396.00₹2,781.00n/a34
May ’25₹3,594.30
₹3,960.68
+10.2%
11.7%₹4,410.00₹1,921.00n/a34
Apr ’25₹3,838.00
₹3,929.67
+2.4%
11.7%₹4,400.00₹1,874.00n/a33
Mar ’25₹3,633.50
₹3,920.85
+7.9%
11.6%₹4,400.00₹1,874.00n/a33
Feb ’25₹3,398.00
₹3,870.23
+13.9%
13.1%₹4,400.00₹1,874.00n/a30
Jan ’25₹3,525.45
₹3,282.84
-6.9%
12.2%₹4,000.00₹1,854.00n/a31
Dec ’24₹3,190.65
₹3,215.13
+0.8%
11.6%₹3,600.00₹1,854.00n/a31
Nov ’24₹2,895.30
₹3,160.47
+9.2%
12.3%₹3,600.00₹1,854.00₹3,626.3532
Oct ’24₹3,023.55
₹2,905.44
-3.9%
10.6%₹3,600.00₹1,921.00₹3,653.5034
Sep ’24₹2,702.10
₹2,815.34
+4.2%
8.6%₹3,080.00₹1,721.00₹3,704.6535
Aug ’24₹2,666.65
₹2,807.50
+5.3%
8.6%₹3,080.00₹1,721.00₹3,779.3036
Jul ’24₹2,475.55
₹2,559.44
+3.4%
8.9%₹2,900.00₹1,666.00₹3,526.5534
Jun ’24₹2,207.80
₹2,537.31
+14.9%
8.9%₹2,900.00₹1,666.00₹3,669.3035
May ’24₹2,364.40
₹2,472.51
+4.6%
8.7%₹2,827.00₹1,520.00₹3,594.3035
Apr ’24₹2,164.20
₹2,421.71
+11.9%
8.6%₹2,827.00₹1,520.00₹3,838.0035
Mar ’24₹2,115.30
₹2,400.25
+13.5%
8.3%₹2,770.00₹1,520.00₹3,633.5036
Feb ’24₹2,145.55
₹2,376.92
+10.8%
8.6%₹2,650.00₹1,520.00₹3,398.0036
Jan ’24₹2,085.80
₹2,272.08
+8.9%
8.5%₹2,500.00₹1,420.00₹3,525.4536
Dec ’23₹2,104.25
₹2,237.94
+6.4%
8.9%₹2,465.00₹1,420.00₹3,190.6534
Nov ’23₹2,024.45
₹2,211.88
+9.3%
8.9%₹2,455.00₹1,420.00₹2,895.3033

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

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