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Last Updated on: 27 November, 2025
Author: Getaka|Social: XLinkedIn

Larsen & Toubro Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: November 26, 2025, 5:28 pm

Market Cap 5,58,887 Cr.
Current Price 4,062
High / Low 4,076/2,965
Stock P/E34.8
Book Value 737
Dividend Yield0.84 %
ROCE14.5 %
ROE16.6 %
Face Value 2.00
PEG Ratio2.47

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 ⇩
Modis Navnirman Ltd 728 Cr. 370 409/22088.8 46.50.00 %12.9 %9.88 % 10.0
Modulex Construction Technologies Ltd 162 Cr. 23.5 35.7/18.0 44.70.00 %2.51 %1.54 % 10.0
MPDL Ltd 34.7 Cr. 46.9 92.7/38.0 1270.00 %2.87 %4.16 % 10.0
IITL Projects Ltd 29.1 Cr. 58.3 78.1/47.1 2.120.00 %16.6 %% 10.0
HB Estate Developers Ltd 181 Cr. 79.0 122/69.916.4 81.00.00 %8.20 %6.60 % 10.0
Industry Average16,994.81 Cr254.1691.06139.950.15%16.62%21.24%21.58

All Competitor Stocks of Larsen & Toubro Ltd

Quarterly Result

MetricJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025
Sales 35,85342,76346,39058,33547,88251,02455,12867,07955,12061,55564,66874,39263,679
Expenses 30,44336,40039,73649,98141,56643,98447,92958,42648,07453,63856,77064,51655,655
Operating Profit 5,4106,3626,6538,3546,3167,0407,1998,6537,0467,9177,8989,8768,024
OPM % 15%15%14%14%13%14%13%13%13%13%12%13%13%
Other Income 6957398917411,1461,1338381,1359211,1019681,6101,357
Interest 2,2122,3042,3832,3342,2992,2722,3442,3452,2922,4392,4862,4192,488
Depreciation 9638608258548309109211,0219981,0241,0471,0521,033
Profit before tax 2,9293,9374,3365,9074,3324,9914,7726,4224,6775,5555,3338,0145,860
Tax % 22%28%29%25%28%23%25%22%26%26%25%23%26%
Net Profit 2,2282,7853,0584,4593,0963,8463,5935,0133,4454,0993,9746,1564,318
EPS in Rs 12.1115.8618.1728.3717.7423.4521.4431.9820.2624.6924.4339.9726.30

Last Updated: August 1, 2025, 6:05 pm

Below is a detailed analysis of the quarterly data for Larsen & Toubro Ltd based on the most recent figures (Jun 2025) and their trends compared to the previous period:

  • For Sales, as of Jun 2025, the value is 63,679.00 Cr.. The value appears to be declining and may need further review. It has decreased from 74,392.00 Cr. (Mar 2025) to 63,679.00 Cr., marking a decrease of 10,713.00 Cr..
  • For Expenses, as of Jun 2025, the value is 55,655.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 64,516.00 Cr. (Mar 2025) to 55,655.00 Cr., marking a decrease of 8,861.00 Cr..
  • For Operating Profit, as of Jun 2025, the value is 8,024.00 Cr.. The value appears to be declining and may need further review. It has decreased from 9,876.00 Cr. (Mar 2025) to 8,024.00 Cr., marking a decrease of 1,852.00 Cr..
  • For OPM %, as of Jun 2025, the value is 13.00%. The value remains steady. There is no change compared to the previous period (Mar 2025) which recorded 13.00%.
  • For Other Income, as of Jun 2025, the value is 1,357.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,610.00 Cr. (Mar 2025) to 1,357.00 Cr., marking a decrease of 253.00 Cr..
  • For Interest, as of Jun 2025, the value is 2,488.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 2,419.00 Cr. (Mar 2025) to 2,488.00 Cr., marking an increase of 69.00 Cr..
  • For Depreciation, as of Jun 2025, the value is 1,033.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 1,052.00 Cr. (Mar 2025) to 1,033.00 Cr., marking a decrease of 19.00 Cr..
  • For Profit before tax, as of Jun 2025, the value is 5,860.00 Cr.. The value appears to be declining and may need further review. It has decreased from 8,014.00 Cr. (Mar 2025) to 5,860.00 Cr., marking a decrease of 2,154.00 Cr..
  • For Tax %, as of Jun 2025, the value is 26.00%. The value appears to be increasing, which may not be favorable. It has increased from 23.00% (Mar 2025) to 26.00%, marking an increase of 3.00%.
  • For Net Profit, as of Jun 2025, the value is 4,318.00 Cr.. The value appears to be declining and may need further review. It has decreased from 6,156.00 Cr. (Mar 2025) to 4,318.00 Cr., marking a decrease of 1,838.00 Cr..
  • For EPS in Rs, as of Jun 2025, the value is 26.30. The value appears to be declining and may need further review. It has decreased from 39.97 (Mar 2025) to 26.30, marking a decrease of 13.67.

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: November 15, 2025, 4:59 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 85,05491,929101,122109,312119,683135,220145,452135,979156,521183,341221,113255,734270,723
Expenses 70,96876,24585,63792,69199,572112,354120,899112,519132,207156,175192,355221,399236,411
Operating Profit 14,08615,68415,48616,62020,11122,86624,55323,46024,31427,16628,75834,33534,311
OPM % 17%17%15%15%17%17%17%17%16%15%13%13%13%
Other Income 1,3371,4221,2191,4661,4652,7013,0158,1112,3642,8914,9533,2895,319
Interest 6,4947,2666,8996,8297,7149,33911,02111,7509,2359,4459,5129,9259,863
Depreciation 1,4462,6231,7872,3702,2231,9232,4622,9042,9483,5023,6824,1214,224
Profit before tax 7,4837,2178,0208,88711,63914,30514,08616,91814,49517,10920,51723,57925,543
Tax % 35%31%30%23%27%28%23%24%29%26%24%25%
Net Profit 4,8854,9664,5926,4868,00410,21710,89412,92110,41912,53115,54717,67319,126
EPS in Rs 35.4134.1730.6443.1752.5963.4868.0282.4761.7074.5095.00109.35119.24
Dividend Payout % 27%32%40%22%30%28%26%44%36%32%36%31%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)1.66%-7.53%41.25%23.40%27.65%6.63%18.61%-19.36%20.27%24.07%13.67%
Change in YoY Net Profit Growth (%)0.00%-9.19%48.78%-17.84%4.24%-21.02%11.98%-37.97%39.63%3.80%-10.39%

Larsen & Toubro Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:12%
3 Years:18%
TTM:16%
Compounded Profit Growth
10 Years:14%
5 Years:10%
3 Years:23%
TTM:17%
Stock Price CAGR
10 Years:13%
5 Years:31%
3 Years:22%
1 Year:-1%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:14%
Last Year:17%

Last Updated: September 5, 2025, 9:35 am

Balance Sheet

Last Updated: November 9, 2025, 2:24 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 185186186187280281281281281281275275275
Reserves 37,52640,72343,99450,03054,62362,09466,44275,58882,12789,04586,08497,381101,108
Borrowings 80,84693,63088,13593,954107,524125,555143,174134,629125,508120,650116,322132,409134,001
Other Liabilities 50,32458,72761,77567,40080,81290,10696,79099,597111,112119,745136,921149,050155,718
Total Liabilities 168,881193,266194,091211,571243,240278,036306,687310,095319,028329,722339,602379,114391,103
Fixed Assets 32,39734,73814,17616,67718,58021,19443,65344,31942,94542,64142,96444,05545,403
CWIP 14,17914,99310,97413,29813,44313,9193,3115001,2503,0663,0452,5893,256
Investments 8,1099,61215,46519,75315,31120,90720,04739,62739,39544,79845,64854,80555,180
Other Assets 114,197133,923153,475161,843195,905222,016239,675225,649235,438239,217247,946277,665287,264
Total Assets 168,881193,266194,091211,571243,240278,036306,687310,095319,028329,722339,602379,114391,103

Below is a detailed analysis of the balance sheet data for Larsen & Toubro Ltd based on the most recent figures (Sep 2025) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2025, the value is 275.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2025) which recorded 275.00 Cr..
  • For Reserves, as of Sep 2025, the value is 101,108.00 Cr.. The value appears strong and on an upward trend. It has increased from 97,381.00 Cr. (Mar 2025) to 101,108.00 Cr., marking an increase of 3,727.00 Cr..
  • For Borrowings, as of Sep 2025, the value is 134,001.00 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 132,409.00 Cr. (Mar 2025) to 134,001.00 Cr., marking an increase of 1,592.00 Cr..
  • For Other Liabilities, as of Sep 2025, the value is 155,718.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 149,050.00 Cr. (Mar 2025) to 155,718.00 Cr., marking an increase of 6,668.00 Cr..
  • For Total Liabilities, as of Sep 2025, the value is 391,103.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 379,114.00 Cr. (Mar 2025) to 391,103.00 Cr., marking an increase of 11,989.00 Cr..
  • For Fixed Assets, as of Sep 2025, the value is 45,403.00 Cr.. The value appears strong and on an upward trend. It has increased from 44,055.00 Cr. (Mar 2025) to 45,403.00 Cr., marking an increase of 1,348.00 Cr..
  • For CWIP, as of Sep 2025, the value is 3,256.00 Cr.. The value appears strong and on an upward trend. It has increased from 2,589.00 Cr. (Mar 2025) to 3,256.00 Cr., marking an increase of 667.00 Cr..
  • For Investments, as of Sep 2025, the value is 55,180.00 Cr.. The value appears strong and on an upward trend. It has increased from 54,805.00 Cr. (Mar 2025) to 55,180.00 Cr., marking an increase of 375.00 Cr..
  • For Other Assets, as of Sep 2025, the value is 287,264.00 Cr.. The value appears strong and on an upward trend. It has increased from 277,665.00 Cr. (Mar 2025) to 287,264.00 Cr., marking an increase of 9,599.00 Cr..
  • For Total Assets, as of Sep 2025, the value is 391,103.00 Cr.. The value appears strong and on an upward trend. It has increased from 379,114.00 Cr. (Mar 2025) to 391,103.00 Cr., marking an increase of 11,989.00 Cr..

However, the Borrowings (134,001.00 Cr.) are higher than the Reserves (101,108.00 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 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity +-7,143-1,365-3,2406,655-10,031-4,7566,69423,07419,16422,77718,2669,161
Cash from Investing Activity +-5,510-4,778-4,627-9,7963,914-11,023-8,408-5,750-3,585-8,0482,179-15,489
Cash from Financing Activity +13,1367,9037,2532,8969,37015,4406,372-15,274-15,181-11,572-25,4136,557
Net Cash Flow4831,759-613-2453,254-3384,6582,0493973,156-4,968228

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-66.00-78.00-73.00-77.00-87.00-103.00-119.00-111.00-101.00-93.00-88.00-98.00

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 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days113119949610199102113108898177
Inventory Days697651414551445144413230
Days Payable261288283301349340336401378302255208
Cash Conversion Cycle-78-92-138-164-203-190-190-236-227-172-143-101
Working Capital Days281244424520252802-16-33
ROCE %12%10%11%11%14%13%12%10%10%12%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025
FIIs23.29%24.48%25.29%25.72%25.50%24.36%22.85%21.72%20.83%19.80%19.33%19.48%
DIIs39.76%38.64%38.01%37.16%37.34%38.08%38.89%40.44%41.71%42.71%43.48%43.34%
Government0.23%0.23%0.23%0.23%0.23%0.23%0.24%0.24%0.24%0.24%0.24%0.24%
Public36.70%36.65%36.47%36.89%36.93%37.33%38.01%37.60%37.21%37.25%36.95%36.92%
No. of Shareholders14,18,08614,25,06414,23,20214,07,11714,54,62415,64,08517,36,84416,89,15516,75,14617,06,26416,81,49116,71,006

Shareholding Pattern Chart

No. of Shareholders

Larsen & Toubro Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF 22,435,022 4.23 6571.3322,435,0222025-04-22 17:25:280%
SBI S&P BSE Sensex ETF 15,802,651 4.86 4628.2815,802,6512025-04-22 17:25:280%
ICICI Prudential Bluechip Fund 10,568,498 7.5 3095.5710,568,4982025-04-22 17:25:280%
SBI Blue Chip Fund 7,417,268 5.63 2172.557,417,2682025-04-22 17:25:280%
Kotak Flexicap Fund - Regular Plan 6,800,000 5.07 1991.756,800,0002025-04-22 14:53:350%
HDFC Balanced Advantage Fund - Regular Plan 5,556,183 2.54 1627.435,556,1832025-04-22 17:25:280%
SBI Equity Hybrid Fund 5,198,418 2.57 1522.645,198,4182025-04-22 15:16:470%
Axis Bluechip Fund 4,676,667 4.46 1369.824,676,6672025-04-22 11:41:350%
Mirae Asset Large Cap Fund 3,652,967 3.11 1069.973,652,9672025-04-22 17:25:280%
Aditya Birla Sun Life Frontline Equity Fund 3,636,371 4.63 1065.113,636,3712025-04-22 17:25:280%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 2.002.002.002.002.00
Basic EPS (Rs.) 109.3693.9674.5161.7182.49
Diluted EPS (Rs.) 109.2893.8874.4561.6582.41
Cash EPS (Rs.) 158.58140.05114.7494.22112.57
Book Value[Excl.RevalReserv]/Share (Rs.) 710.12746.01736.87678.79625.97
Book Value[Incl.RevalReserv]/Share (Rs.) 710.12746.01736.87678.79625.97
Revenue From Operations / Share (Rs.) 1859.621608.501304.451113.99968.13
PBDIT / Share (Rs.) 222.22201.15168.50145.79135.66
PBIT / Share (Rs.) 192.25174.37143.58124.81114.98
PBT / Share (Rs.) 171.46149.25121.73103.2561.80
Net Profit / Share (Rs.) 128.62113.2689.8273.2491.89
NP After MI And SOA / Share (Rs.) 109.3495.0074.5061.7082.47
PBDIT Margin (%) 11.9412.5012.9113.0814.01
PBIT Margin (%) 10.3310.8411.0011.2011.87
PBT Margin (%) 9.229.279.339.266.38
Net Profit Margin (%) 6.917.046.886.579.49
NP After MI And SOA Margin (%) 5.875.905.715.538.51
Return on Networth / Equity (%) 15.3915.1211.7210.5215.26
Return on Capital Employeed (%) 14.8914.7011.9910.919.28
Return On Assets (%) 3.963.843.162.703.72
Long Term Debt / Equity (X) 0.580.650.680.741.07
Total Debt / Equity (X) 1.331.321.331.501.73
Asset Turnover Ratio (%) 0.710.660.440.420.32
Current Ratio (X) 1.211.231.371.311.42
Quick Ratio (X) 1.181.201.331.271.38
Inventory Turnover Ratio (X) 3.872.892.812.811.32
Dividend Payout Ratio (NP) (%) 25.6032.2929.5229.1631.51
Dividend Payout Ratio (CP) (%) 20.0925.1822.1221.7625.20
Earning Retention Ratio (%) 74.4067.7170.4870.8468.49
Cash Earning Retention Ratio (%) 79.9174.8277.8878.2474.80
Interest Coverage Ratio (X) 9.167.807.386.554.87
Interest Coverage Ratio (Post Tax) (X) 6.165.364.894.263.10
Enterprise Value (Cr.) 604424.40633678.46414490.66365816.69327629.64
EV / Net Operating Revenue (X) 2.362.872.262.342.41
EV / EBITDA (X) 19.7822.9217.5017.8617.20
MarketCap / Net Operating Revenue (X) 1.882.351.661.591.47
Retention Ratios (%) 74.3967.7070.4770.8368.48
Price / BV (X) 4.926.013.413.012.63
Price / Net Operating Revenue (X) 1.882.351.661.591.47
EarningsYield 0.030.020.030.030.05

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 25, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 24) which recorded 2.00.
  • For Basic EPS (Rs.), as of Mar 25, the value is 109.36. This value is within the healthy range. It has increased from 93.96 (Mar 24) to 109.36, marking an increase of 15.40.
  • For Diluted EPS (Rs.), as of Mar 25, the value is 109.28. This value is within the healthy range. It has increased from 93.88 (Mar 24) to 109.28, marking an increase of 15.40.
  • For Cash EPS (Rs.), as of Mar 25, the value is 158.58. This value is within the healthy range. It has increased from 140.05 (Mar 24) to 158.58, marking an increase of 18.53.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 710.12. It has decreased from 746.01 (Mar 24) to 710.12, marking a decrease of 35.89.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 710.12. It has decreased from 746.01 (Mar 24) to 710.12, marking a decrease of 35.89.
  • For Revenue From Operations / Share (Rs.), as of Mar 25, the value is 1,859.62. It has increased from 1,608.50 (Mar 24) to 1,859.62, marking an increase of 251.12.
  • For PBDIT / Share (Rs.), as of Mar 25, the value is 222.22. This value is within the healthy range. It has increased from 201.15 (Mar 24) to 222.22, marking an increase of 21.07.
  • For PBIT / Share (Rs.), as of Mar 25, the value is 192.25. This value is within the healthy range. It has increased from 174.37 (Mar 24) to 192.25, marking an increase of 17.88.
  • For PBT / Share (Rs.), as of Mar 25, the value is 171.46. This value is within the healthy range. It has increased from 149.25 (Mar 24) to 171.46, marking an increase of 22.21.
  • For Net Profit / Share (Rs.), as of Mar 25, the value is 128.62. This value is within the healthy range. It has increased from 113.26 (Mar 24) to 128.62, marking an increase of 15.36.
  • For NP After MI And SOA / Share (Rs.), as of Mar 25, the value is 109.34. This value is within the healthy range. It has increased from 95.00 (Mar 24) to 109.34, marking an increase of 14.34.
  • For PBDIT Margin (%), as of Mar 25, the value is 11.94. This value is within the healthy range. It has decreased from 12.50 (Mar 24) to 11.94, marking a decrease of 0.56.
  • For PBIT Margin (%), as of Mar 25, the value is 10.33. This value is within the healthy range. It has decreased from 10.84 (Mar 24) to 10.33, marking a decrease of 0.51.
  • For PBT Margin (%), as of Mar 25, the value is 9.22. This value is below the healthy minimum of 10. It has decreased from 9.27 (Mar 24) to 9.22, marking a decrease of 0.05.
  • For Net Profit Margin (%), as of Mar 25, the value is 6.91. This value is within the healthy range. It has decreased from 7.04 (Mar 24) to 6.91, marking a decrease of 0.13.
  • For NP After MI And SOA Margin (%), as of Mar 25, the value is 5.87. This value is below the healthy minimum of 8. It has decreased from 5.90 (Mar 24) to 5.87, marking a decrease of 0.03.
  • For Return on Networth / Equity (%), as of Mar 25, the value is 15.39. This value is within the healthy range. It has increased from 15.12 (Mar 24) to 15.39, marking an increase of 0.27.
  • For Return on Capital Employeed (%), as of Mar 25, the value is 14.89. This value is within the healthy range. It has increased from 14.70 (Mar 24) to 14.89, marking an increase of 0.19.
  • For Return On Assets (%), as of Mar 25, the value is 3.96. This value is below the healthy minimum of 5. It has increased from 3.84 (Mar 24) to 3.96, marking an increase of 0.12.
  • For Long Term Debt / Equity (X), as of Mar 25, the value is 0.58. This value is within the healthy range. It has decreased from 0.65 (Mar 24) to 0.58, marking a decrease of 0.07.
  • For Total Debt / Equity (X), as of Mar 25, the value is 1.33. This value exceeds the healthy maximum of 1. It has increased from 1.32 (Mar 24) to 1.33, marking an increase of 0.01.
  • For Asset Turnover Ratio (%), as of Mar 25, the value is 0.71. It has increased from 0.66 (Mar 24) to 0.71, marking an increase of 0.05.
  • For Current Ratio (X), as of Mar 25, the value is 1.21. This value is below the healthy minimum of 1.5. It has decreased from 1.23 (Mar 24) to 1.21, marking a decrease of 0.02.
  • For Quick Ratio (X), as of Mar 25, the value is 1.18. This value is within the healthy range. It has decreased from 1.20 (Mar 24) to 1.18, marking a decrease of 0.02.
  • For Inventory Turnover Ratio (X), as of Mar 25, the value is 3.87. This value is below the healthy minimum of 4. It has increased from 2.89 (Mar 24) to 3.87, marking an increase of 0.98.
  • For Dividend Payout Ratio (NP) (%), as of Mar 25, the value is 25.60. This value is within the healthy range. It has decreased from 32.29 (Mar 24) to 25.60, marking a decrease of 6.69.
  • For Dividend Payout Ratio (CP) (%), as of Mar 25, the value is 20.09. This value is within the healthy range. It has decreased from 25.18 (Mar 24) to 20.09, marking a decrease of 5.09.
  • For Earning Retention Ratio (%), as of Mar 25, the value is 74.40. This value exceeds the healthy maximum of 70. It has increased from 67.71 (Mar 24) to 74.40, marking an increase of 6.69.
  • For Cash Earning Retention Ratio (%), as of Mar 25, the value is 79.91. This value exceeds the healthy maximum of 70. It has increased from 74.82 (Mar 24) to 79.91, marking an increase of 5.09.
  • For Interest Coverage Ratio (X), as of Mar 25, the value is 9.16. This value is within the healthy range. It has increased from 7.80 (Mar 24) to 9.16, marking an increase of 1.36.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 25, the value is 6.16. This value is within the healthy range. It has increased from 5.36 (Mar 24) to 6.16, marking an increase of 0.80.
  • For Enterprise Value (Cr.), as of Mar 25, the value is 604,424.40. It has decreased from 633,678.46 (Mar 24) to 604,424.40, marking a decrease of 29,254.06.
  • For EV / Net Operating Revenue (X), as of Mar 25, the value is 2.36. This value is within the healthy range. It has decreased from 2.87 (Mar 24) to 2.36, marking a decrease of 0.51.
  • For EV / EBITDA (X), as of Mar 25, the value is 19.78. This value exceeds the healthy maximum of 15. It has decreased from 22.92 (Mar 24) to 19.78, marking a decrease of 3.14.
  • For MarketCap / Net Operating Revenue (X), as of Mar 25, the value is 1.88. This value is within the healthy range. It has decreased from 2.35 (Mar 24) to 1.88, marking a decrease of 0.47.
  • For Retention Ratios (%), as of Mar 25, the value is 74.39. This value exceeds the healthy maximum of 70. It has increased from 67.70 (Mar 24) to 74.39, marking an increase of 6.69.
  • For Price / BV (X), as of Mar 25, the value is 4.92. This value exceeds the healthy maximum of 3. It has decreased from 6.01 (Mar 24) to 4.92, marking a decrease of 1.09.
  • For Price / Net Operating Revenue (X), as of Mar 25, the value is 1.88. This value is within the healthy range. It has decreased from 2.35 (Mar 24) to 1.88, marking a decrease of 0.47.
  • For EarningsYield, as of Mar 25, the value is 0.03. This value is below the healthy minimum of 5. It has increased from 0.02 (Mar 24) to 0.03, marking an increase 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 November 27, 2025 is: 3,434.61

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 November 27, 2025, Larsen & Toubro Ltd is Overvalued by 15.45% compared to the current share price 4,062.00

Intrinsic Value of Larsen & Toubro Ltd as of November 27, 2025 is: 3,918.36

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 November 27, 2025, Larsen & Toubro Ltd is Overvalued by 3.54% compared to the current share price 4,062.00

Last 5 Year EPS CAGR: 14.08%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 16.42, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -161.17, which is a positive sign.
  3. The company has shown consistent growth in sales (154.23 cr) and profit (14.15 cr) over the years.
  1. The stock has a low average ROCE of 11.83%, which may not be favorable.
  2. The company has higher borrowings (115,102.85) compared to reserves (68,212.69), 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: 6.91%
      • 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: 14.89% (Industry Average ROCE: 16.62%)
      • 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%: 15.39% (Industry Average ROE: 21.24%)
      • 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): 6.16
      • 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: 1.18
      • 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: 34.8 (Industry average Stock P/E: 91.06)
      • 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: 1.33
      • 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 and maintenance of motorways, streets, roads, other vehicular and pedestrian ways, highways, bridges, tunnels and subways. Company's Total Operating Revenue is Rs. 142509.01 Cr. and Equity Capital is Rs. 275.04 Cr. for the Year ended 31/03/2025.
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. Subramanian SarmaDeputy Managing Director
Mr. R Shankar RamanWholeTime Director & CFO
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. Pramit JhaveriIndependent Director
Mrs. Preetha ReddyIndependent Director
Mr. Sanjeev AgaIndependent Director
Mr. Narayanan KumarIndependent Director

FAQ

What is the intrinsic value of Larsen & Toubro Ltd?

Larsen & Toubro Ltd's intrinsic value (as of 27 November 2025) is 3434.61 which is 15.45% lower the current market price of 4,062.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 5,58,887 Cr. market cap, FY2025-2026 high/low of 4,076/2,965, reserves of ₹101,108 Cr, and liabilities of 391,103 Cr.

What is the Market Cap of Larsen & Toubro Ltd?

The Market Cap of Larsen & Toubro Ltd is 5,58,887 Cr..

What is the current Stock Price of Larsen & Toubro Ltd as on 27 November 2025?

The current stock price of Larsen & Toubro Ltd as on 27 November 2025 is 4,062.

What is the High / Low of Larsen & Toubro Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Larsen & Toubro Ltd stocks is 4,076/2,965.

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

The Stock P/E of Larsen & Toubro Ltd is 34.8.

What is the Book Value of Larsen & Toubro Ltd?

The Book Value of Larsen & Toubro Ltd is 737.

What is the Dividend Yield of Larsen & Toubro Ltd?

The Dividend Yield of Larsen & Toubro Ltd is 0.84 %.

What is the ROCE of Larsen & Toubro Ltd?

The ROCE of Larsen & Toubro Ltd is 14.5 %.

What is the ROE of Larsen & Toubro Ltd?

The ROE of Larsen & Toubro Ltd is 16.6 %.

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
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