Fundamental Analysis of Larsen & Toubro Ltd

About the Company - Larsen & Toubro Ltd

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. 101000.41 Cr. and Equity Capital is Rs. 281.01 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Construction, Contracting & Engineering	L&T House, Mumbai Maharashtra 400001	igrc@larsentoubro.com http://www.larsentoubro.com

Management
Name	Position Held
Mr. S N Subrahmanyan	Chairman & Managing Director
Mr. R Shankar Raman	WholeTime Director & CFO
Mr. Subramanian Sarma	President & Wholetime Director
Mr. S V Desai	WholeTime Director & Sr.Exe.VP
Mr. T Madhava Das	WholeTime Director & Sr.Exe.VP
Mr. Anil V Parab	WholeTime Director & Sr.Exe.VP
Mr. Siddhartha Mohanty	Nominee Director
Mr. P R Ramesh	Independent Director
Mr. Ajay Tyagi	Independent Director
Mr. Jyoti Sagar	Independent Director
Mr. Rajnish Kumar	Independent Director
Mr. Adil Siraj Zainulbhai	Independent Director
Mr. Pramit Jhaveri	Independent Director
Mrs. Preetha Reddy	Independent Director
Mr. Sanjeev Aga	Independent Director
Mr. Narayanan Kumar	Independent Director

Basic Stock Data of Larsen & Toubro Ltd

Last Updated: July 6, 2024, 11:54 am

Market Cap	4,98,678 Cr.
Current Price	3,627
High / Low	3,949/2,420
Stock P/E	38.7
Book Value	628
Dividend Yield	0.77 %
ROCE	13.4 %
ROE	14.7 %
Face Value	2.00
PEG Ratio	6.46

Larsen & Toubro Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	35,596	48,088	29,335	34,773	39,563	52,851	35,853	42,763	46,390	58,335	47,882	51,024	55,128
Expenses	29,531	40,007	26,163	30,778	33,581	44,892	30,443	36,400	39,736	49,981	41,566	43,984	47,929
Operating Profit	6,066	8,081	3,171	3,995	5,982	7,959	5,410	6,362	6,653	8,354	6,316	7,040	7,199
OPM %	17%	17%	11%	11%	15%	15%	15%	15%	14%	14%	13%	14%	13%
Other Income	1,274	1,028	648	629	571	516	695	739	891	741	1,146	1,133	838
Interest	2,748	2,670	827	779	2,267	2,147	2,212	2,304	2,383	2,334	2,299	2,272	2,344
Depreciation	702	817	717	729	732	769	963	860	825	854	830	910	921
Profit before tax	3,890	5,623	2,275	3,116	3,554	5,558	2,929	3,937	4,336	5,907	4,332	4,991	4,772
Tax %	27%	37%	32%	28%	30%	28%	22%	28%	29%	25%	28%	23%	25%
Net Profit	2,858	3,696	1,532	2,232	2,517	4,138	2,228	2,785	3,058	4,459	3,096	3,846	3,593
EPS in Rs	17.57	23.44	8.36	12.95	14.63	25.77	12.11	15.86	18.17	28.37	17.74	23.45	21.44

Last Updated: June 7, 2024, 9:02 am

Larsen & Toubro Ltd Quarterly Chart

Larsen & Toubro Ltd Profit & Loss

Last Updated: June 30, 2024, 4:12 am

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	64,255	74,426	85,054	91,929	101,122	109,312	119,683	135,220	145,452	135,979	156,521	183,341	212,369
Expenses	53,578	63,032	70,968	76,245	85,637	92,691	99,572	112,354	120,899	112,519	132,207	156,349	183,460
Operating Profit	10,676	11,394	14,086	15,684	15,486	16,620	20,111	22,866	24,553	23,460	24,314	26,992	28,910
OPM %	17%	15%	17%	17%	15%	15%	17%	17%	17%	17%	16%	15%	14%
Other Income	886	2,523	1,337	1,422	1,219	1,466	1,465	2,701	3,015	8,111	2,364	3,065	3,857
Interest	3,008	4,642	6,494	7,266	6,899	6,829	7,714	9,339	11,021	11,750	9,235	9,445	9,250
Depreciation	1,580	1,637	1,446	2,623	1,787	2,370	2,223	1,923	2,462	2,904	2,948	3,502	3,515
Profit before tax	6,974	7,638	7,483	7,217	8,020	8,887	11,639	14,305	14,086	16,918	14,495	17,109	20,003
Tax %	33%	31%	35%	31%	30%	23%	27%	28%	23%	24%	29%	26%
Net Profit	4,737	5,291	4,885	4,966	4,592	6,486	8,004	10,217	10,894	12,921	10,419	12,531	14,993
EPS in Rs	34.13	37.69	35.41	34.17	30.64	43.17	52.59	63.48	68.02	82.47	61.70	74.50	91.00
Dividend Payout %	21%	22%	27%	32%	40%	22%	30%	28%	26%	44%	36%	32%

Larsen & Toubro Ltd Profit & Loss Yearly Chart

Larsen & Toubro Ltd Growth

Compounded Sales Growth
10 Years:	10%
5 Years:	10%
3 Years:	18%
TTM:	21%

Compounded Profit Growth
10 Years:	11%
5 Years:	8%
3 Years:	-2%
TTM:	27%

Stock Price CAGR
10 Years:	12%
5 Years:	18%
3 Years:	33%
1 Year:	44%

Return on Equity
10 Years:	14%
5 Years:	14%
3 Years:	12%
Last Year:	15%

Last Updated: June 30, 2024, 5:00 pm

Larsen & Toubro Ltd Balance Sheet

Last Updated: July 2, 2024, 11:07 am

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	122	123	185	186	186	187	280	281	281	281	281	281	275
Reserves	29,264	33,737	37,526	40,723	43,994	50,030	54,623	62,094	66,442	75,588	82,127	89,045	78,137
Preference Capital	0	0	0	0	1,313	1,147	905	976	1,404	1,124	216	0
Borrowings	51,568	63,144	80,846	93,630	86,822	92,807	106,619	124,579	141,770	133,505	125,292	120,650	122,109
Other Liabilities	38,228	45,924	50,324	58,727	63,088	68,547	81,717	91,083	98,194	100,721	111,328	119,745	122,602
Total Liabilities	119,182	142,928	168,881	193,266	194,091	211,571	243,240	278,036	306,687	310,095	319,028	329,722	323,122
Fixed Assets	19,403	30,389	32,397	34,738	14,176	16,677	18,580	21,194	43,653	44,319	42,945	42,641	43,120
CWIP	14,913	11,351	14,179	14,993	10,974	13,298	13,443	13,919	3,311	500	1,250	3,066	2,739
Investments	8,789	8,768	8,109	9,612	15,465	19,753	15,311	20,907	20,047	39,627	39,395	44,798	40,845
Other Assets	76,076	92,421	114,197	133,923	153,475	161,843	195,905	222,016	239,675	225,649	235,438	239,217	236,418
Total Assets	119,182	142,928	168,881	193,266	194,091	211,571	243,240	278,036	306,687	310,095	319,028	329,722	323,122

Larsen & Toubro Ltd Reserves and Borrowings Chart

Larsen & Toubro Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	-6,227	-4,355	-7,143	-1,365	-3,240	6,655	-10,031	-4,756	6,694	23,074	19,164	22,777
Cash from Investing Activity	-5,864	-6,922	-5,510	-4,778	-4,627	-9,796	3,914	-11,023	-8,408	-5,750	-3,585	-8,048
Cash from Financing Activity	11,968	11,429	13,136	7,903	7,253	2,896	9,370	15,440	6,372	-15,274	-15,181	-11,572
Net Cash Flow	-123	152	483	1,759	-613	-245	3,254	-338	4,658	2,049	397	3,156

Larsen & Toubro Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	117	113	113	119	94	96	101	99	102	113	108	89
Inventory Days	60	72	69	76	51	41	45	51	44	51	44	41
Days Payable	244	251	261	288	283	301	349	340	336	401	378	302
Cash Conversion Cycle	-66	-66	-78	-92	-138	-164	-203	-190	-190	-236	-227	-172
Working Capital Days	73	92	88	78	98	98	104	99	114	103	72	67
ROCE %	13%	12%	12%	10%	11%	11%	14%	13%	12%	10%	10%	12%

Larsen & Toubro Ltd Financial Efficiency Indicators Chart

Larsen & Toubro Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
FIIs	22.88%	22.86%	23.24%	22.42%	21.09%	22.12%	23.29%	24.48%	25.29%	25.72%	25.50%	24.36%
DIIs	32.75%	33.11%	32.71%	33.49%	34.61%	40.49%	39.76%	38.64%	38.01%	37.16%	37.34%	38.08%
Government	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%
Public	44.14%	43.80%	43.82%	43.86%	44.07%	37.17%	36.70%	36.65%	36.47%	36.89%	36.93%	37.33%
No. of Shareholders	13,69,379	13,46,453	13,84,818	14,92,124	15,55,966	14,78,383	14,18,086	14,25,064	14,23,202	14,07,117	14,54,624	15,64,085

Larsen & Toubro Ltd Shareholding Pattern Chart

No. of Larsen & Toubro Ltd Shareholders

Larsen & Toubro Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
SBI Nifty 50 ETF	22,435,022	4.23	6571.33	7,417,268	2024-07-05	202.47%
SBI S&P BSE Sensex ETF	15,802,651	4.86	4628.28	7,417,268	2024-07-05	113.05%
ICICI Prudential Bluechip Fund	10,568,498	7.5	3095.57	7,417,268	2024-07-05	42.49%
SBI Blue Chip Fund	7,417,268	5.63	2172.55	7,417,268	2024-07-05	0%
Kotak Flexicap Fund - Regular Plan	6,800,000	5.07	1991.75	7,417,268	2024-07-05	-8.32%
HDFC Balanced Advantage Fund - Regular Plan	5,556,183	2.54	1627.43	7,417,268	2024-07-05	-25.09%
SBI Equity Hybrid Fund	5,198,418	2.57	1522.64	7,417,268	2024-07-05	-29.91%
Axis Bluechip Fund	4,676,667	4.46	1369.82	7,417,268	2024-07-05	-36.95%
Mirae Asset Large Cap Fund	3,652,967	3.11	1069.97	7,417,268	2024-07-05	-50.75%
Aditya Birla Sun Life Frontline Equity Fund	3,636,371	4.63	1065.11	7,417,268	2024-07-05	-50.97%

Larsen & Toubro Ltd ROCE Trend

Larsen & Toubro Ltd EPS Trend

Larsen & Toubro Ltd Key Financial Ratios

Month	Mar 23	Mar 22	Mar 21	Mar 20	Mar 19
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	74.51	61.71	82.49	68.04	63.51
Diluted EPS (Rs.)	74.45	61.65	82.41	67.95	63.40
Cash EPS (Rs.)	114.74	94.22	112.57	94.63	86.69
Book Value[Excl.RevalReserv]/Share (Rs.)	736.87	678.79	625.97	543.09	492.23
Book Value[Incl.RevalReserv]/Share (Rs.)	736.87	678.79	625.97	543.09	492.23
Revenue From Operations / Share (Rs.)	1304.45	1113.99	968.13	1036.06	963.97
PBDIT / Share (Rs.)	168.50	145.79	135.66	133.13	122.38
PBIT / Share (Rs.)	143.58	124.81	114.98	115.59	108.67
PBT / Share (Rs.)	121.73	103.25	61.80	95.67	97.92
Net Profit / Share (Rs.)	89.82	73.24	91.89	77.09	72.98
NP After MI And SOA / Share (Rs.)	74.50	61.70	82.47	68.02	63.48
PBDIT Margin (%)	12.91	13.08	14.01	12.84	12.69
PBIT Margin (%)	11.00	11.20	11.87	11.15	11.27
PBT Margin (%)	9.33	9.26	6.38	9.23	10.15
Net Profit Margin (%)	6.88	6.57	9.49	7.44	7.57
NP After MI And SOA Margin (%)	5.71	5.53	8.51	6.56	6.58
Return on Networth / Equity (%)	11.72	10.52	15.26	14.31	14.31
Return on Capital Employeed (%)	11.99	10.91	9.28	9.93	10.54
Return On Assets (%)	3.16	2.70	3.72	3.09	3.19
Long Term Debt / Equity (X)	0.68	0.74	1.07	1.21	1.19
Total Debt / Equity (X)	1.33	1.50	1.73	2.09	2.02
Asset Turnover Ratio (%)	0.44	0.42	0.32	0.39	0.44
Current Ratio (X)	1.37	1.31	1.42	1.26	1.25
Quick Ratio (X)	1.33	1.27	1.38	1.22	1.20
Inventory Turnover Ratio (X)	2.81	2.81	1.32	1.19	1.39
Dividend Payout Ratio (NP) (%)	29.52	29.16	31.51	41.15	0.00
Dividend Payout Ratio (CP) (%)	22.12	21.76	25.20	32.71	0.00
Earning Retention Ratio (%)	70.48	70.84	68.49	58.85	0.00
Cash Earning Retention Ratio (%)	77.88	78.24	74.80	67.29	0.00
Interest Coverage Ratio (X)	7.38	6.55	4.87	6.68	9.52
Interest Coverage Ratio (Post Tax) (X)	4.89	4.26	3.10	4.64	6.20
Enterprise Value (Cr.)	414490.66	365816.69	327629.64	248683.84	314802.65
EV / Net Operating Revenue (X)	2.26	2.34	2.41	1.71	2.33
EV / EBITDA (X)	17.50	17.86	17.20	13.31	18.34
MarketCap / Net Operating Revenue (X)	1.66	1.59	1.47	0.77	1.44
Retention Ratios (%)	70.47	70.83	68.48	58.84	0.00
Price / BV (X)	3.41	3.01	2.63	1.70	3.12
Price / Net Operating Revenue (X)	1.66	1.59	1.47	0.77	1.44
EarningsYield	0.03	0.03	0.05	0.08	0.04

Larsen & Toubro Ltd Profitability Ratios (%)

Larsen & Toubro Ltd Liquidity Ratios

Larsen & Toubro Ltd Liquidity Ratios (%)

Larsen & Toubro Ltd Interest Coverage Ratios (%)

Larsen & Toubro Ltd Valuation Ratios

Fair Value

Fair Value: 3,600.14

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.

Overvalued: 0.74% compared to the current price 3627

Intrinsic Value: 3,815.93

Calculation basis:

Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 5.21% compared to the current price ₹3627

Last 5 Year EPS CAGR: 5.99%

*Investments are subject to market risks

Strength and Weakness of Larsen & Toubro Ltd Stock

Strength	Weakness
The stock has a low average Cash Conversion Cycle of -151.83, which is a positive sign. The company has higher reserves (57,179.23 cr) compared to borrowings (545.00 cr), indicating strong financial stability. The company has shown consistent growth in sales (123.77 cr) and profit (11.46 cr) over the years.	The stock has a low average ROCE of 11.67%, which may not be favorable. The stock has a high average Working Capital Days of 90.50, which may not be favorable.

FAQ

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

The latest fair value of Larsen & Toubro Ltd is ₹3600.14.

What is the Market Cap of Larsen & Toubro Ltd?

The Market Cap of Larsen & Toubro Ltd is 4,98,678 Cr..

What is the current Stock Price of Larsen & Toubro Ltd as on 06 July 2024?

The current stock price of Larsen & Toubro Ltd as on 06 July 2024 is 3,627.

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

In FY 2024, the High / Low of Larsen & Toubro Ltd stocks is 3,949/2,420.

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

The Stock P/E of Larsen & Toubro Ltd is 38.7.

What is the Book Value of Larsen & Toubro Ltd?

The Book Value of Larsen & Toubro Ltd is 628.

What is the Dividend Yield of Larsen & Toubro Ltd?

The Dividend Yield of Larsen & Toubro Ltd is 0.77 %.

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.