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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringL&T House, Ballard Estate, Mumbai Maharashtra 400001igrc@larsentoubro.com
http://www.larsentoubro.com
Management
NamePosition Held
Mr. A M NaikGroup Chairman
Mr. S N SubrahmanyanManaging Director & CEO
Mr. R Shankar RamanWholeTime Director & CFO
Mr. S V DesaiWholeTime Director & Sr.Exe.VP
Mr. T Madhava DasWholeTime Director & Sr.Exe.VP
Mr. M V SatishWholeTime Director & Sr.Exe.VP
Mr. Subramanian SarmaWholeTime Director & Sr.Exe.VP
Mr. Vikram Singh MehtaIndependent Director
Mr. Adil Siraj ZainulbhaiIndependent Director
Mr. M M ChitaleIndependent Director
Mr. Pramit JhaveriIndependent Director
Mr. M DamodaranIndependent Director
Mr. Sanjeev AgaIndependent Director
Mr. Narayanan KumarIndependent Director
Mrs. Preetha ReddyIndependent Director
Mr. Hemant BhargavaNominee Director
Mr. Anil V ParabWholeTime Director & Sr.Exe.VP
Mr. Jyoti SagarIndependent Director
Mr. Rajnish KumarIndependent Director

Basic Stock Data of Larsen & Toubro Ltd

Last Updated: June 17, 2024, 8:26 pm

Market Cap 5,06,982 Cr.
Current Price 3,688
High / Low3,949/2,354
Stock P/E39.3
Book Value 628
Dividend Yield0.76 %
ROCE13.4 %
ROE14.7 %
Face Value 2.00
PEG Ratio6.56

Larsen & Toubro Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales35,59648,08829,33534,77339,56352,85135,85342,76346,39058,33547,88251,02455,128
Expenses29,53140,00726,16330,77833,58144,89230,44336,40039,73649,98141,56643,98447,929
Operating Profit6,0668,0813,1713,9955,9827,9595,4106,3626,6538,3546,3167,0407,199
OPM %17%17%11%11%15%15%15%15%14%14%13%14%13%
Other Income1,2741,0286486295715166957398917411,1461,133838
Interest2,7482,6708277792,2672,1472,2122,3042,3832,3342,2992,2722,344
Depreciation702817717729732769963860825854830910921
Profit before tax3,8905,6232,2753,1163,5545,5582,9293,9374,3365,9074,3324,9914,772
Tax %27%37%32%28%30%28%22%28%29%25%28%23%25%
Net Profit2,8583,6961,5322,2322,5174,1382,2282,7853,0584,4593,0963,8463,593
EPS in Rs17.5723.448.3612.9514.6325.7712.1115.8618.1728.3717.7423.4521.44

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

Larsen & Toubro Ltd Quarterly Chart

Larsen & Toubro Ltd Profit & Loss

Last Updated: May 30, 2024, 11:10 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales64,25574,42685,05491,929101,122109,312119,683135,220145,452135,979156,521183,341212,369
Expenses53,57863,03270,96876,24585,63792,69199,572112,354120,899112,519132,207156,349183,460
Operating Profit10,67611,39414,08615,68415,48616,62020,11122,86624,55323,46024,31426,99228,910
OPM %17%15%17%17%15%15%17%17%17%17%16%15%14%
Other Income8862,5231,3371,4221,2191,4661,4652,7013,0158,1112,3643,0653,857
Interest3,0084,6426,4947,2666,8996,8297,7149,33911,02111,7509,2359,4459,250
Depreciation1,5801,6371,4462,6231,7872,3702,2231,9232,4622,9042,9483,5023,515
Profit before tax6,9747,6387,4837,2178,0208,88711,63914,30514,08616,91814,49517,10920,003
Tax %33%31%35%31%30%23%27%28%23%24%29%26%
Net Profit4,7375,2914,8854,9664,5926,4868,00410,21710,89412,92110,41912,53114,993
EPS in Rs34.1337.6935.4134.1730.6443.1752.5963.4868.0282.4761.7074.5091.00
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:13%
5 Years:19%
3 Years:36%
1 Year:56%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:12%
Last Year:15%

Last Updated: June 17, 2024, 2:56 pm

Larsen & Toubro Ltd Balance Sheet

Last Updated: June 1, 2024, 11:22 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital122123185186186187280281281281281281275
Reserves29,26433,73737,52640,72343,99450,03054,62362,09466,44275,58882,12789,04578,137
Preference Capital00001,3131,1479059761,4041,1242160
Borrowings51,56863,14480,84693,63086,82292,807106,619124,579141,770133,505125,292120,650122,109
Other Liabilities38,22845,92450,32458,72763,08868,54781,71791,08398,194100,721111,328119,745122,602
Total Liabilities119,182142,928168,881193,266194,091211,571243,240278,036306,687310,095319,028329,722323,122
Fixed Assets19,40330,38932,39734,73814,17616,67718,58021,19443,65344,31942,94542,64143,120
CWIP14,91311,35114,17914,99310,97413,29813,44313,9193,3115001,2503,0662,739
Investments8,7898,7688,1099,61215,46519,75315,31120,90720,04739,62739,39544,79840,845
Other Assets76,07692,421114,197133,923153,475161,843195,905222,016239,675225,649235,438239,217236,418
Total Assets119,182142,928168,881193,266194,091211,571243,240278,036306,687310,095319,028329,722323,122

Larsen & Toubro Ltd Reserves and Borrowings Chart

Larsen & Toubro Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -6,227-4,355-7,143-1,365-3,2406,655-10,031-4,7566,69423,07419,16422,777
Cash from Investing Activity -5,864-6,922-5,510-4,778-4,627-9,7963,914-11,023-8,408-5,750-3,585-8,048
Cash from Financing Activity 11,96811,42913,1367,9037,2532,8969,37015,4406,372-15,274-15,181-11,572
Net Cash Flow-1231524831,759-613-2453,254-3384,6582,0493973,156

Larsen & Toubro Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days11711311311994961019910211310889
Inventory Days607269765141455144514441
Days Payable244251261288283301349340336401378302
Cash Conversion Cycle-66-66-78-92-138-164-203-190-190-236-227-172
Working Capital Days739288789898104991141037267
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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
FIIs22.88%22.86%23.24%22.42%21.09%22.12%23.29%24.48%25.29%25.72%25.50%24.36%
DIIs32.75%33.11%32.71%33.49%34.61%40.49%39.76%38.64%38.01%37.16%37.34%38.08%
Government0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%0.23%
Public44.14%43.80%43.82%43.86%44.07%37.17%36.70%36.65%36.47%36.89%36.93%37.33%
No. of Shareholders13,69,37913,46,45313,84,81814,92,12415,55,96614,78,38314,18,08614,25,06414,23,20214,07,11714,54,62415,64,085

Larsen & Toubro Ltd Shareholding Pattern Chart

No. of Larsen & Toubro Ltd Shareholders

Larsen & Toubro Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF22,435,0224.236571.3322,435,0222024-06-170%
SBI S&P BSE Sensex ETF15,802,6514.864628.2822,435,0222024-06-17-29.56%
ICICI Prudential Bluechip Fund10,568,4987.53095.5722,435,0222024-06-17-52.89%
SBI Blue Chip Fund7,417,2685.632172.5522,435,0222024-06-17-66.94%
Kotak Flexicap Fund - Regular Plan6,800,0005.071991.7522,435,0222024-06-17-69.69%
HDFC Balanced Advantage Fund - Regular Plan5,556,1832.541627.4322,435,0222024-06-17-75.23%
SBI Equity Hybrid Fund5,198,4182.571522.6422,435,0222024-06-17-76.83%
Axis Bluechip Fund4,676,6674.461369.8222,435,0222024-06-17-79.15%
Mirae Asset Large Cap Fund3,652,9673.111069.9722,435,0222024-06-17-83.72%
Aditya Birla Sun Life Frontline Equity Fund3,636,3714.631065.1122,435,0222024-06-17-83.79%

Larsen & Toubro Ltd ROCE Trend

Larsen & Toubro Ltd EPS Trend

Larsen & Toubro Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)74.5161.7182.4968.0463.51
Diluted EPS (Rs.)74.4561.6582.4167.9563.40
Cash EPS (Rs.)114.7494.22112.5794.6386.69
Book Value[Excl.RevalReserv]/Share (Rs.)736.87678.79625.97543.09492.23
Book Value[Incl.RevalReserv]/Share (Rs.)736.87678.79625.97543.09492.23
Revenue From Operations / Share (Rs.)1304.451113.99968.131036.06963.97
PBDIT / Share (Rs.)168.50145.79135.66133.13122.38
PBIT / Share (Rs.)143.58124.81114.98115.59108.67
PBT / Share (Rs.)121.73103.2561.8095.6797.92
Net Profit / Share (Rs.)89.8273.2491.8977.0972.98
NP After MI And SOA / Share (Rs.)74.5061.7082.4768.0263.48
PBDIT Margin (%)12.9113.0814.0112.8412.69
PBIT Margin (%)11.0011.2011.8711.1511.27
PBT Margin (%)9.339.266.389.2310.15
Net Profit Margin (%)6.886.579.497.447.57
NP After MI And SOA Margin (%)5.715.538.516.566.58
Return on Networth / Equity (%)11.7210.5215.2614.3114.31
Return on Capital Employeed (%)11.9910.919.289.9310.54
Return On Assets (%)3.162.703.723.093.19
Long Term Debt / Equity (X)0.680.741.071.211.19
Total Debt / Equity (X)1.331.501.732.092.02
Asset Turnover Ratio (%)0.440.420.320.390.44
Current Ratio (X)1.371.311.421.261.25
Quick Ratio (X)1.331.271.381.221.20
Inventory Turnover Ratio (X)2.812.811.321.191.39
Dividend Payout Ratio (NP) (%)29.5229.1631.5141.150.00
Dividend Payout Ratio (CP) (%)22.1221.7625.2032.710.00
Earning Retention Ratio (%)70.4870.8468.4958.850.00
Cash Earning Retention Ratio (%)77.8878.2474.8067.290.00
Interest Coverage Ratio (X)7.386.554.876.689.52
Interest Coverage Ratio (Post Tax) (X)4.894.263.104.646.20
Enterprise Value (Cr.)414490.66365816.69327629.64248683.84314802.65
EV / Net Operating Revenue (X)2.262.342.411.712.33
EV / EBITDA (X)17.5017.8617.2013.3118.34
MarketCap / Net Operating Revenue (X)1.661.591.470.771.44
Retention Ratios (%)70.4770.8368.4858.840.00
Price / BV (X)3.413.012.631.703.12
Price / Net Operating Revenue (X)1.661.591.470.771.44
EarningsYield0.030.030.050.080.04

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: 3,655.59

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: 0.88% compared to the current price 3688

Intrinsic Value: 3,874.70

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: 5.06% compared to the current price ₹3688

Last 5 Year EPS CAGR: 5.99%

*Investments are subject to market risks

Strength and Weakness of Larsen & Toubro Ltd Stock

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -151.83, which is a positive sign.
  2. The company has higher reserves (57,179.23 cr) compared to borrowings (545.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (123.77 cr) and profit (11.46 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 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 ₹3655.59.

What is the Market Cap of Larsen & Toubro Ltd?

The Market Cap of Larsen & Toubro Ltd is 5,06,982 Cr..

What is the current Stock Price of Larsen & Toubro Ltd as on 19 June 2024?

The current stock price of Larsen & Toubro Ltd as on 19 June 2024 is ₹3,688.

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 3,949/2,354.

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

The Stock P/E of Larsen & Toubro Ltd is 39.3.

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 0.76 %.

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.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

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