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Last Updated on: 10 March, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Larsen & Toubro Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 8, 2025, 1:31 pm

Market Cap 4,46,203 Cr.
Current Price 3,245
High / Low 3,964/3,141
Stock P/E32.2
Book Value 649
Dividend Yield0.86 %
ROCE13.4 %
ROE14.7 %
Face Value 2.00
PEG Ratio7.65

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Larsen & Toubro Ltd

Competitors of Larsen & Toubro Ltd

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Modern Engineering and Projects Ltd 50.7 Cr. 32.8 87.3/26.8 32.50.00 %98.7 %% 10.0
Modis Navnirman Ltd 456 Cr. 233 311/22054.3 50.00.00 %13.9 %11.4 % 10.0
Modulex Construction Technologies Ltd 165 Cr. 23.9 35.7/7.7229.4 42.60.00 %1.85 %2.57 % 10.0
MPDL Ltd 37.7 Cr. 50.9 92.7/31.4 1360.00 %3.39 %6.29 % 10.0
IITL Projects Ltd 31.8 Cr. 63.6 78.1/34.41,058 70.70.00 %%% 10.0
Industry Average14,110.79 Cr230.2553.51124.550.17%23.71%26.89%21.15

All Competitor Stocks of Larsen & Toubro Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 39,56352,85135,85342,76346,39058,33547,88251,02455,12867,07955,12061,55564,668
Expenses 33,58144,89230,44336,40039,73649,98141,56643,98447,92958,42648,07453,63856,770
Operating Profit 5,9827,9595,4106,3626,6538,3546,3167,0407,1998,6537,0467,9177,898
OPM % 15%15%15%15%14%14%13%14%13%13%13%13%12%
Other Income 5715166957398917411,1461,1338381,1359211,101968
Interest 2,2672,1472,2122,3042,3832,3342,2992,2722,3442,3452,2922,4392,486
Depreciation 7327699638608258548309109211,0219981,0241,047
Profit before tax 3,5545,5582,9293,9374,3365,9074,3324,9914,7726,4224,6775,5555,333
Tax % 30%28%22%28%29%25%28%23%25%22%26%26%25%
Net Profit 2,5174,1382,2282,7853,0584,4593,0963,8463,5935,0133,4454,0993,974
EPS in Rs 14.6325.7712.1115.8618.1728.3717.7423.4521.4431.9820.2624.6924.43

Last Updated: February 28, 2025, 6:45 pm

Below is a detailed analysis of the quarterly data for Larsen & Toubro Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is ₹64,668.00 Cr.. The value appears strong and on an upward trend. It has increased from 61,555.00 Cr. (Sep 2024) to ₹64,668.00 Cr., marking an increase of ₹3,113.00 Cr..
  • For Expenses, as of Dec 2024, the value is ₹56,770.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 53,638.00 Cr. (Sep 2024) to ₹56,770.00 Cr., marking an increase of ₹3,132.00 Cr..
  • For Operating Profit, as of Dec 2024, the value is ₹7,898.00 Cr.. The value appears to be declining and may need further review. It has decreased from 7,917.00 Cr. (Sep 2024) to ₹7,898.00 Cr., marking a decrease of 19.00 Cr..
  • For OPM %, as of Dec 2024, the value is 12.00%. The value appears to be declining and may need further review. It has decreased from 13.00% (Sep 2024) to 12.00%, marking a decrease of 1.00%.
  • For Other Income, as of Dec 2024, the value is ₹968.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,101.00 Cr. (Sep 2024) to ₹968.00 Cr., marking a decrease of 133.00 Cr..
  • For Interest, as of Dec 2024, the value is ₹2,486.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 2,439.00 Cr. (Sep 2024) to ₹2,486.00 Cr., marking an increase of ₹47.00 Cr..
  • For Depreciation, as of Dec 2024, the value is ₹1,047.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 1,024.00 Cr. (Sep 2024) to ₹1,047.00 Cr., marking an increase of ₹23.00 Cr..
  • For Profit before tax, as of Dec 2024, the value is ₹5,333.00 Cr.. The value appears to be declining and may need further review. It has decreased from 5,555.00 Cr. (Sep 2024) to ₹5,333.00 Cr., marking a decrease of 222.00 Cr..
  • For Tax %, as of Dec 2024, the value is 25.00%. The value appears to be improving (decreasing) as expected. It has decreased from 26.00% (Sep 2024) to 25.00%, marking a decrease of 1.00%.
  • For Net Profit, as of Dec 2024, the value is ₹3,974.00 Cr.. The value appears to be declining and may need further review. It has decreased from 4,099.00 Cr. (Sep 2024) to ₹3,974.00 Cr., marking a decrease of 125.00 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 24.43. The value appears to be declining and may need further review. It has decreased from ₹24.69 (Sep 2024) to 24.43, marking a decrease of ₹0.26.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 3:40 pm

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 74,42685,05491,929101,122109,312119,683135,220145,452135,979156,521183,341221,113248,421
Expenses 63,03270,96876,24585,63792,69199,572112,354120,899112,519132,207156,175191,248216,907
Operating Profit 11,39414,08615,68415,48616,62020,11122,86624,55323,46024,31427,16629,86531,514
OPM % 15%17%17%15%15%17%17%17%17%16%15%14%13%
Other Income 2,5231,3371,4221,2191,4661,4652,7013,0158,1112,3642,8913,8474,125
Interest 4,6426,4947,2666,8996,8297,7149,33911,02111,7509,2359,4459,5129,563
Depreciation 1,6371,4462,6231,7872,3702,2231,9232,4622,9042,9483,5023,6824,090
Profit before tax 7,6387,4837,2178,0208,88711,63914,30514,08616,91814,49517,10920,51721,987
Tax % 31%35%31%30%23%27%28%23%24%29%26%24%
Net Profit 5,2914,8854,9664,5926,4868,00410,21710,89412,92110,41912,53115,54716,531
EPS in Rs 37.6935.4134.1730.6443.1752.5963.4868.0282.4761.7074.5095.00101.36
Dividend Payout % 22%27%32%40%22%30%28%26%44%36%32%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-7.67%1.66%-7.53%41.25%23.40%27.65%6.63%18.61%-19.36%20.27%24.07%
Change in YoY Net Profit Growth (%)0.00%9.33%-9.19%48.78%-17.84%4.24%-21.02%11.98%-37.97%39.63%3.80%

Larsen & Toubro Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:10%
3 Years:18%
TTM:17%
Compounded Profit Growth
10 Years:11%
5 Years:8%
3 Years:-2%
TTM:10%
Stock Price CAGR
10 Years:11%
5 Years:24%
3 Years:23%
1 Year:-12%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:12%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:38 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 123185186186187280281281281281281275275
Reserves 33,73737,52640,72343,99450,03054,62362,09466,44275,58882,12789,04586,08488,955
Borrowings 63,14480,84693,63088,13593,954107,524125,555143,174134,629125,508120,650116,322126,183
Other Liabilities 45,92450,32458,72761,77567,40080,81290,10696,79099,597111,112119,745136,412141,194
Total Liabilities 142,928168,881193,266194,091211,571243,240278,036306,687310,095319,028329,722339,094356,608
Fixed Assets 30,38932,39734,73814,17616,67718,58021,19443,65344,31942,94542,64142,96443,284
CWIP 11,35114,17914,99310,97413,29813,44313,9193,3115001,2503,0663,0452,561
Investments 8,7688,1099,61215,46519,75315,31120,90720,04739,62739,39544,79845,64848,704
Other Assets 92,421114,197133,923153,475161,843195,905222,016239,675225,649235,438239,217247,437262,059
Total Assets 142,928168,881193,266194,091211,571243,240278,036306,687310,095319,028329,722339,094356,608

Below is a detailed analysis of the balance sheet data for Larsen & Toubro Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹275.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded ₹275.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹88,955.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹86,084.00 Cr. (Mar 2024) to ₹88,955.00 Cr., marking an increase of 2,871.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹126,183.00 Cr.. The value appears to be increasing, which may not be favorable. However, Borrowings exceed Reserves, which may signal higher financial risk. It has increased from ₹116,322.00 Cr. (Mar 2024) to ₹126,183.00 Cr., marking an increase of 9,861.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹141,194.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹136,412.00 Cr. (Mar 2024) to ₹141,194.00 Cr., marking an increase of 4,782.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹356,608.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹339,094.00 Cr. (Mar 2024) to ₹356,608.00 Cr., marking an increase of 17,514.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹43,284.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹42,964.00 Cr. (Mar 2024) to ₹43,284.00 Cr., marking an increase of 320.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹2,561.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹3,045.00 Cr. (Mar 2024) to ₹2,561.00 Cr., marking a decrease of 484.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹48,704.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹45,648.00 Cr. (Mar 2024) to ₹48,704.00 Cr., marking an increase of 3,056.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹262,059.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹247,437.00 Cr. (Mar 2024) to ₹262,059.00 Cr., marking an increase of 14,622.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹356,608.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹339,094.00 Cr. (Mar 2024) to ₹356,608.00 Cr., marking an increase of 17,514.00 Cr..

However, the Borrowings (126,183.00 Cr.) are higher than the Reserves (₹88,955.00 Cr.), which may signal higher financial risk.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-4,355-7,143-1,365-3,2406,655-10,031-4,7566,69423,07419,16422,77718,266
Cash from Investing Activity +-6,922-5,510-4,778-4,627-9,7963,914-11,023-8,408-5,750-3,585-8,0482,179
Cash from Financing Activity +11,42913,1367,9037,2532,8969,37015,4406,372-15,274-15,181-11,572-25,413
Net Cash Flow1524831,759-613-2453,254-3384,6582,0493973,156-4,968

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-52.00-66.00-78.00-73.00-77.00-87.00-103.00-119.00-111.00-101.00-93.00-87.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1131131199496101991021131088981
Inventory Days726976514145514451444132
Days Payable251261288283301349340336401378302255
Cash Conversion Cycle-66-78-92-138-164-203-190-190-236-227-172-143
Working Capital Days928878989810499114103726531
ROCE %12%12%10%11%11%14%13%12%10%10%12%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
FIIs22.42%21.09%22.12%23.29%24.48%25.29%25.72%25.50%24.36%22.85%21.72%20.83%
DIIs33.49%34.61%40.49%39.76%38.64%38.01%37.16%37.34%38.08%38.89%40.44%41.71%
Government0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.24%0.24%0.24%
Public43.86%44.07%37.17%36.70%36.65%36.47%36.89%36.93%37.33%38.01%37.60%37.21%
No. of Shareholders14,92,12415,55,96614,78,38314,18,08614,25,06414,23,20214,07,11714,54,62415,64,08517,36,84416,89,15516,75,146

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF22,435,0224.236571.3322,435,0222025-03-090%
SBI S&P BSE Sensex ETF15,802,6514.864628.2822,435,0222025-03-09-29.56%
ICICI Prudential Bluechip Fund10,568,4987.53095.5722,435,0222025-03-09-52.89%
SBI Blue Chip Fund7,417,2685.632172.5522,435,0222025-03-09-66.94%
Kotak Flexicap Fund - Regular Plan6,800,0005.071991.7522,435,0222025-03-09-69.69%
HDFC Balanced Advantage Fund - Regular Plan5,556,1832.541627.4322,435,0222025-03-09-75.23%
SBI Equity Hybrid Fund5,198,4182.571522.6422,435,0222025-03-09-76.83%
Axis Bluechip Fund4,676,6674.461369.8222,435,0222025-03-09-79.15%
Mirae Asset Large Cap Fund3,652,9673.111069.9722,435,0222025-03-09-83.72%
Aditya Birla Sun Life Frontline Equity Fund3,636,3714.631065.1122,435,0222025-03-09-83.79%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 2.002.002.002.002.00
Basic EPS (Rs.) 93.9674.5161.7182.4968.04
Diluted EPS (Rs.) 93.8874.4561.6582.4167.95
Cash EPS (Rs.) 140.05114.7494.22112.5794.63
Book Value[Excl.RevalReserv]/Share (Rs.) 746.01736.87678.79625.97543.09
Book Value[Incl.RevalReserv]/Share (Rs.) 746.01736.87678.79625.97543.09
Revenue From Operations / Share (Rs.) 1608.501304.451113.99968.131036.06
PBDIT / Share (Rs.) 201.15168.50145.79135.66133.13
PBIT / Share (Rs.) 174.37143.58124.81114.98115.59
PBT / Share (Rs.) 149.25121.73103.2561.8095.67
Net Profit / Share (Rs.) 113.2689.8273.2491.8977.09
NP After MI And SOA / Share (Rs.) 95.0074.5061.7082.4768.02
PBDIT Margin (%) 12.5012.9113.0814.0112.84
PBIT Margin (%) 10.8411.0011.2011.8711.15
PBT Margin (%) 9.279.339.266.389.23
Net Profit Margin (%) 7.046.886.579.497.44
NP After MI And SOA Margin (%) 5.905.715.538.516.56
Return on Networth / Equity (%) 15.1211.7210.5215.2614.31
Return on Capital Employeed (%) 14.7011.9910.919.289.93
Return On Assets (%) 3.843.162.703.723.09
Long Term Debt / Equity (X) 0.650.680.741.071.21
Total Debt / Equity (X) 1.321.331.501.732.09
Asset Turnover Ratio (%) 0.660.440.420.320.39
Current Ratio (X) 1.231.371.311.421.26
Quick Ratio (X) 1.201.331.271.381.22
Inventory Turnover Ratio (X) 2.892.812.811.321.19
Dividend Payout Ratio (NP) (%) 32.2929.5229.1631.5141.15
Dividend Payout Ratio (CP) (%) 25.1822.1221.7625.2032.71
Earning Retention Ratio (%) 67.7170.4870.8468.4958.85
Cash Earning Retention Ratio (%) 74.8277.8878.2474.8067.29
Interest Coverage Ratio (X) 7.807.386.554.876.68
Interest Coverage Ratio (Post Tax) (X) 5.364.894.263.104.64
Enterprise Value (Cr.) 633678.46414490.66365816.69327629.64248683.84
EV / Net Operating Revenue (X) 2.872.262.342.411.71
EV / EBITDA (X) 22.9217.5017.8617.2013.31
MarketCap / Net Operating Revenue (X) 2.351.661.591.470.77
Retention Ratios (%) 67.7070.4770.8368.4858.84
Price / BV (X) 6.013.413.012.631.70
Price / Net Operating Revenue (X) 2.351.661.591.470.77
EarningsYield 0.020.030.030.050.08

After reviewing the key financial ratios for Larsen & Toubro Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 93.96. This value is within the healthy range. It has increased from 74.51 (Mar 23) to 93.96, marking an increase of 19.45.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 93.88. This value is within the healthy range. It has increased from 74.45 (Mar 23) to 93.88, marking an increase of 19.43.
  • For Cash EPS (Rs.), as of Mar 24, the value is 140.05. This value is within the healthy range. It has increased from 114.74 (Mar 23) to 140.05, marking an increase of 25.31.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 746.01. It has increased from 736.87 (Mar 23) to 746.01, marking an increase of 9.14.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 746.01. It has increased from 736.87 (Mar 23) to 746.01, marking an increase of 9.14.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 1,608.50. It has increased from 1,304.45 (Mar 23) to 1,608.50, marking an increase of 304.05.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 201.15. This value is within the healthy range. It has increased from 168.50 (Mar 23) to 201.15, marking an increase of 32.65.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 174.37. This value is within the healthy range. It has increased from 143.58 (Mar 23) to 174.37, marking an increase of 30.79.
  • For PBT / Share (Rs.), as of Mar 24, the value is 149.25. This value is within the healthy range. It has increased from 121.73 (Mar 23) to 149.25, marking an increase of 27.52.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 113.26. This value is within the healthy range. It has increased from 89.82 (Mar 23) to 113.26, marking an increase of 23.44.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 95.00. This value is within the healthy range. It has increased from 74.50 (Mar 23) to 95.00, marking an increase of 20.50.
  • For PBDIT Margin (%), as of Mar 24, the value is 12.50. This value is within the healthy range. It has decreased from 12.91 (Mar 23) to 12.50, marking a decrease of 0.41.
  • For PBIT Margin (%), as of Mar 24, the value is 10.84. This value is within the healthy range. It has decreased from 11.00 (Mar 23) to 10.84, marking a decrease of 0.16.
  • For PBT Margin (%), as of Mar 24, the value is 9.27. This value is below the healthy minimum of 10. It has decreased from 9.33 (Mar 23) to 9.27, marking a decrease of 0.06.
  • For Net Profit Margin (%), as of Mar 24, the value is 7.04. This value is within the healthy range. It has increased from 6.88 (Mar 23) to 7.04, marking an increase of 0.16.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 5.90. This value is below the healthy minimum of 8. It has increased from 5.71 (Mar 23) to 5.90, marking an increase of 0.19.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 15.12. This value is within the healthy range. It has increased from 11.72 (Mar 23) to 15.12, marking an increase of 3.40.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 14.70. This value is within the healthy range. It has increased from 11.99 (Mar 23) to 14.70, marking an increase of 2.71.
  • For Return On Assets (%), as of Mar 24, the value is 3.84. This value is below the healthy minimum of 5. It has increased from 3.16 (Mar 23) to 3.84, marking an increase of 0.68.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.65. This value is within the healthy range. It has decreased from 0.68 (Mar 23) to 0.65, marking a decrease of 0.03.
  • For Total Debt / Equity (X), as of Mar 24, the value is 1.32. This value exceeds the healthy maximum of 1. It has decreased from 1.33 (Mar 23) to 1.32, marking a decrease of 0.01.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 0.66. It has increased from 0.44 (Mar 23) to 0.66, marking an increase of 0.22.
  • For Current Ratio (X), as of Mar 24, the value is 1.23. This value is below the healthy minimum of 1.5. It has decreased from 1.37 (Mar 23) to 1.23, marking a decrease of 0.14.
  • For Quick Ratio (X), as of Mar 24, the value is 1.20. This value is within the healthy range. It has decreased from 1.33 (Mar 23) to 1.20, marking a decrease of 0.13.
  • For Inventory Turnover Ratio (X), as of Mar 24, the value is 2.89. This value is below the healthy minimum of 4. It has increased from 2.81 (Mar 23) to 2.89, marking an increase of 0.08.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 32.29. This value is within the healthy range. It has increased from 29.52 (Mar 23) to 32.29, marking an increase of 2.77.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 25.18. This value is within the healthy range. It has increased from 22.12 (Mar 23) to 25.18, marking an increase of 3.06.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 67.71. This value is within the healthy range. It has decreased from 70.48 (Mar 23) to 67.71, marking a decrease of 2.77.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 74.82. This value exceeds the healthy maximum of 70. It has decreased from 77.88 (Mar 23) to 74.82, marking a decrease of 3.06.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 7.80. This value is within the healthy range. It has increased from 7.38 (Mar 23) to 7.80, marking an increase of 0.42.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 5.36. This value is within the healthy range. It has increased from 4.89 (Mar 23) to 5.36, marking an increase of 0.47.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 633,678.46. It has increased from 414,490.66 (Mar 23) to 633,678.46, marking an increase of 219,187.80.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 2.87. This value is within the healthy range. It has increased from 2.26 (Mar 23) to 2.87, marking an increase of 0.61.
  • For EV / EBITDA (X), as of Mar 24, the value is 22.92. This value exceeds the healthy maximum of 15. It has increased from 17.50 (Mar 23) to 22.92, marking an increase of 5.42.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 2.35. This value is within the healthy range. It has increased from 1.66 (Mar 23) to 2.35, marking an increase of 0.69.
  • For Retention Ratios (%), as of Mar 24, the value is 67.70. This value is within the healthy range. It has decreased from 70.47 (Mar 23) to 67.70, marking a decrease of 2.77.
  • For Price / BV (X), as of Mar 24, the value is 6.01. This value exceeds the healthy maximum of 3. It has increased from 3.41 (Mar 23) to 6.01, marking an increase of 2.60.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 2.35. This value is within the healthy range. It has increased from 1.66 (Mar 23) to 2.35, marking an increase of 0.69.
  • For EarningsYield, as of Mar 24, the value is 0.02. This value is below the healthy minimum of 5. It has decreased from 0.03 (Mar 23) to 0.02, marking a decrease of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Larsen & Toubro Ltd as of March 10, 2025 is: ₹2,478.72

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of March 10, 2025, Larsen & Toubro Ltd is Overvalued by 23.61% compared to the current share price 3,245.00

Intrinsic Value of Larsen & Toubro Ltd as of March 10, 2025 is: 2,583.10

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of March 10, 2025, Larsen & Toubro Ltd is Overvalued by 20.40% compared to the current share price 3,245.00

Last 5 Year EPS CAGR: 4.21%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -158.25, which is a positive sign.
  2. The company has shown consistent growth in sales (138.62 cr) and profit (12.62 cr) over the years.
  1. The stock has a low average ROCE of 11.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 86.83, which may not be favorable.
  3. The company has higher borrowings (109,173.38) compared to reserves (62,382.15), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Larsen & Toubro Ltd:
    1. Net Profit Margin: 7.04%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.7% (Industry Average ROCE: 23.71%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.12% (Industry Average ROE: 26.89%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.36
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.2
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 32.2 (Industry average Stock P/E: 53.51)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.32
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Larsen & Toubro Ltd. is a Public Limited Listed company incorporated on 07/02/1946 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L99999MH1946PLC004768 and registration number is 004768. Currently Company is involved in the business activities of Construction of utility projects. Company's Total Operating Revenue is Rs. 126235.85 Cr. and Equity Capital is Rs. 274.93 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringL&T House, Mumbai Maharashtra 400001igrc@larsentoubro.com
http://www.larsentoubro.com
Management
NamePosition Held
Mr. S N SubrahmanyanChairman & Managing Director
Mr. R Shankar RamanWholeTime Director & CFO
Mr. Subramanian SarmaPresident & Wholetime Director
Mr. S V DesaiWholeTime Director & Sr.Exe.VP
Mr. T Madhava DasWholeTime Director & Sr.Exe.VP
Mr. Anil V ParabWholeTime Director & Sr.Exe.VP
Mr. Siddhartha MohantyNominee Director
Mr. P R RameshIndependent Director
Mr. Ajay TyagiIndependent Director
Mr. Jyoti SagarIndependent Director
Mr. Rajnish KumarIndependent Director
Mr. Adil Siraj ZainulbhaiIndependent Director
Mr. Pramit JhaveriIndependent Director
Mrs. Preetha ReddyIndependent Director
Mr. Sanjeev AgaIndependent Director
Mr. Narayanan KumarIndependent Director

FAQ

What is the latest intrinsic value of Larsen & Toubro Ltd?

The latest intrinsic value of Larsen & Toubro Ltd as on 09 March 2025 is ₹2478.72, which is 23.61% lower than the current market price of 3,245.00, indicating the stock is overvalued by 23.61%. The intrinsic value of Larsen & Toubro Ltd is calculated using PE ratio method. The stock has a market capitalization of ₹4,46,203 Cr. and recorded a high/low of ₹3,964/3,141 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹88,955 Cr and total liabilities of ₹356,608 Cr.

What is the Market Cap of Larsen & Toubro Ltd?

The Market Cap of Larsen & Toubro Ltd is 4,46,203 Cr..

What is the current Stock Price of Larsen & Toubro Ltd as on 09 March 2025?

The current stock price of Larsen & Toubro Ltd as on 09 March 2025 is ₹3,245.

What is the High / Low of Larsen & Toubro Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Larsen & Toubro Ltd stocks is ₹3,964/3,141.

What is the Stock P/E of Larsen & Toubro Ltd?

The Stock P/E of Larsen & Toubro Ltd is 32.2.

What is the Book Value of Larsen & Toubro Ltd?

The Book Value of Larsen & Toubro Ltd is 649.

What is the Dividend Yield of Larsen & Toubro Ltd?

The Dividend Yield of Larsen & Toubro Ltd is 0.86 %.

What is the ROCE of Larsen & Toubro Ltd?

The ROCE of Larsen & Toubro Ltd is 13.4 %.

What is the ROE of Larsen & Toubro Ltd?

The ROE of Larsen & Toubro Ltd is 14.7 %.

What is the Face Value of Larsen & Toubro Ltd?

The Face Value of Larsen & Toubro Ltd is 2.00.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Larsen & Toubro Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE