Larsen and Toubro Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹485,098.2 crore, PE ratio of 37.15, and debt-to-equity ratio of 113.43. The return on equity is not provided. These figures reflect the company’s financial health and current market valuation.
Content:
- Larsen & Toubro Ltd Overview
- Larsen & Toubro Financial Results
- Larsen & Toubro Financial Analysis
- Larsen & Toubro Company Metrics
- Larsen & Toubro Stock Performance
- Larsen & Toubro Peer Comparison
- Larsen and Toubro Shareholding Pattern
- Larsen and Toubro History
- How To Invest In Larsen & Toubro Ltd Share?
- Larsen & Toubro Limited Fundamental Analysis – FAQs
Larsen & Toubro Ltd Overview
Larsen and Toubro Ltd is a major Indian multinational engaged in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and services. It operates across various sectors including infrastructure, energy, defence, IT, and financial services.
The company has a market capitalisation of ₹485,098.2 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 11.11% below its 52-week high and 34.9% above its 52-week low.
Larsen & Toubro Financial Results
Larsen and Toubro Ltd demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹1,56,521 crore to ₹2,21,113 crore and net profit rising from ₹10,419 crore to ₹15,547 crore. The company maintained a stable OPM and improved EPS over the years.
1. Revenue Trend: Sales increased from ₹1,56,521 crore in FY 22 to ₹1,83,341 crore in FY 23, and further to ₹2,21,113 crore in FY 24, indicating robust revenue growth.
2. Equity and Liabilities: Detailed equity and liabilities aren’t provided, but rising interest expenses from ₹3,126 crore in FY 22 to ₹3,546 crore in FY 24 suggest increased financial liabilities or borrowing.
3. Profitability: Operating Profit Margin (OPM) remained stable at 11% in FY 23 and FY 24, slightly down from 12% in FY 22, reflecting consistent operational efficiency.
4. Earnings per Share (EPS): EPS increased from ₹61.71 in FY 22 to ₹74.51 in FY 23, and further to ₹93.96 in FY 24, indicating strong profit growth per share.
5. Return on Net Worth (RoNW): While RoNW isn’t directly mentioned, the increasing net profit from ₹10,419 crore in FY 22 to ₹15,547 crore in FY 24 suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.
6. Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹20,484 crore in FY 22 to ₹27,652 crore in FY 24, despite rising interest and depreciation expenses, showcasing robust financial health and management.
Larsen & Toubro Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 2,21,113 | 1,83,341 | 1,56,521 |
| Expenses | 1,97,619 | 1,62,587 | 1,38,304 |
| Operating Profit | 23,494 | 20,753 | 18,217 |
| OPM % | 11 | 11 | 12 |
| Other Income | 4,252 | 3,065 | 2,364 |
| EBITDA | 27,652 | 23,682 | 20,484 |
| Interest | 3,546 | 3,207 | 3,126 |
| Depreciation | 3,682 | 3,502 | 2,948 |
| Profit Before Tax | 20,517 | 17,109 | 14,508 |
| Tax % | 24.11 | 26.21 | 29.06 |
| Net Profit | 15,547 | 12,531 | 10,419 |
| EPS | 93.96 | 74.51 | 61.71 |
| Dividend Payout % | 36 | 32 | 35.65 |
* Consolidated Figures in Rs. Crores
Larsen & Toubro Company Metrics
Larsen & Toubro’s market capitalization is ₹485,098.2 crore, with a book value of ₹628 per share and a face value of ₹2 per share. The asset turnover ratio is 0.67, total debt is ₹116,322.22 crore, quarterly EBITDA is ₹7,966.46 crore, and the dividend yield is 0.96%.
Market Capitalization: Market Capitalization represents the total market value of Larsen & Toubro’s outstanding shares, amounting to ₹485,098.2 crore.
Book Value: The book value per share of Larsen & Toubro Ltd is ₹628 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value: The face value of Larsen & Toubro’s shares is ₹2, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio: The Asset Turnover Ratio of 0.67 measures how efficiently Larsen & Toubro uses its assets to generate sales revenue or sales income.
Total Debt: The Total Debt of Larsen & Toubro stands at ₹116,322.22 crore, representing the total amount of money the company owes to creditors.
EBITDA (Q): The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Larsen & Toubro is ₹7,966.46 crore, indicating the company’s operating performance.
Dividend Yield: The dividend yield of 0.96% shows the annual dividend payment as a percentage of Larsen & Toubro’s current share price, indicating the return on investment from dividends alone.
Larsen & Toubro Stock Performance
Larsen and Toubro Ltd delivered returns of 35.9% in one year, 31.3% over three years, and 21.4% over five years, showcasing consistent and robust growth. This performance highlights the company’s ability to generate substantial returns for investors over various investment horizons.
| Period | Return on Investment (%) |
| 1 Year | 35.9 |
| 3 Years | 31.3 |
| 5 Years | 21.4 |
Example: If an investor had invested ₹1,000 in Larsen & Toubro’s stock:
1 year ago, their investment would be worth ₹1,359.
3 years ago, their investment would have grown to ₹1,313.
5 years ago, their investment would have increased to approximately ₹1,214.
Larsen & Toubro Peer Comparison
Larsen and Toubro Ltd, with a CMP of ₹3,592.05 and a P/E ratio of 37.17, has a market cap of ₹4,93,970.47 Cr and a one-year return of 35.88%. In comparison, peers like Techno Electric & Engineering and HFCL have higher one-year returns of 256.43% and 89.71%, respectively, showcasing varied performances within the sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| Larsen & Toubro | 3,592.05 | 37.17 | 4,93,970.47 | 35.88 | 9,51,567.00 | -1.59 | 0.91 | 9.03 | 8.05 |
| GMR Airports Inf | 99.48 | 1,05,243.31 | 86.47 | 1,87,17,313.00 | 1.98 | 0.96 | 4.12 | 11.96 | |
| Techno Elec.Engg | 1,648.30 | 71.24 | 19,124.13 | 256.43 | 60,728.00 | 10.10 | 0.93 | 7.24 | 106.74 |
| HFCL | 132.51 | 51.43 | 19,115.46 | 89.71 | 4,73,69,603.00 | 7.81 | 0.93 | 7.01 | 29.78 |
| Rites | 685.15 | 38.63 | 16,473.83 | 44.18 | 6,89,519.00 | -6.10 | 0.83 | 17.07 | -12.87 |
| Waaree Renewab. | 1,577.55 | 101.28 | 16,430.07 | 499.30 | 1,23,137.00 | -19.95 | 0.52 | 48.07 | 78.36 |
| Engineers India | 222.90 | 31.51 | 12,538.92 | 48.80 | 59,13,656.00 | -15.00 | 0.73 | 26.68 | -1.55 |
Larsen and Toubro Shareholding Pattern
Larsen and Toubro Ltd’s shareholding pattern from December 2023 to June 2024 shows FIIs decreasing from 26% to 22.85%. DIIs increased from 37.47% to 39.02%, while retail and others’ holdings rose slightly from 37.03% to 38.12%, indicating a shift in investor composition.
| Jun-24 | Mar-24 | Dec-23 | |
| FII | 22.85 | 24.36 | 26 |
| DII | 39.02 | 38.21 | 37.47 |
| Retail & others | 38.12 | 37.43 | 37.03 |
Larsen and Toubro History
Larsen & Toubro Limited is a diversified Indian multinational conglomerate, primarily engaged in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and services. The company’s operations span across multiple segments, including Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, IT & Technology Services, Financial Services, and Development Projects.
In the Infrastructure Projects segment, L&T delivers comprehensive solutions for building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, and water and effluent treatment. The Energy Projects segment focuses on EPC solutions in the hydrocarbon business, power sector, and green energy space, showcasing the company’s adaptability to evolving energy needs.
L&T’s Hi-Tech Manufacturing segment is involved in designing and manufacturing custom-engineered critical equipment and systems, with a particular focus on the defence and aerospace sectors. The company’s global presence extends to over 50 countries, highlighting its international reach and diverse project portfolio across various industries and geographies.
How To Invest In Larsen & Toubro Ltd Share?
To invest in Larsen & Toubro Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Larsen & Toubro shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Larsen & Toubro Limited Fundamental Analysis – FAQs
Fundamental analysis of Larsen & Toubro examines key financial metrics: Market Cap (₹485,098.2 crores), PE Ratio (37.15), and Debt to Equity (113.43). The Return on Equity is not provided. These indicators offer insights into the company’s financial health and market valuation in the engineering and construction sector.
The market capitalization of Larsen & Toubro Ltd is ₹485,098.2 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Larsen & Toubro Limited is a leading Indian multinational conglomerate engaged in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and services. It operates across various sectors including infrastructure, energy, defence, IT, and financial services, with a global presence.
Larsen & Toubro is a public limited company and doesn’t have a single owner. It was founded by Henning Holck-Larsen and Søren Kristian Toubro. As a listed company, it has multiple shareholders including institutional investors, public shareholders, and employee ownership trusts.
The main shareholders of Larsen & Toubro typically include institutional investors (both domestic and foreign), mutual funds, employee ownership trusts, and public shareholders. For the most current and accurate information on major shareholders, refer to the latest shareholding pattern disclosed by the company.
Larsen & Toubro operates in the engineering and construction industry. It is a diversified conglomerate with interests in infrastructure, power, defence, heavy engineering, IT, and financial services. The company is known for its capabilities in executing large-scale projects across various sectors.
To invest in Larsen & Toubro shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Larsen & Toubro is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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