Larsen & Toubro Ltd
NSE: LT BSE: 500510
â‚ą3660.40
+18.40 (0.51%)
Sat, 24 Oct 2026, 00:52 am
Market Cap (in Cr)505641.42
PE Ratio30.36
Dividend1.03
Industrial Services
Engineering & Construction
24.5KLarsen & Toubro Analysis
dividend
- Dividends per share have increased over the past 10 years.
- Dividends paid are well covered by earnings (3.5x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
- Larsen & Toubro's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Larsen & Toubro's dividend is below the markets top 25% of dividend payers in India (3.08%).
future
- Larsen & Toubro's earnings growth is expected to exceed the low risk savings rate of 7.2%.
- Larsen & Toubro's earnings are expected to increase by more than the low risk growth rate in 3 years time.
- Performance (ROE) is expected to be above the current IN Construction industry average.
- An improvement in Larsen & Toubro's performance (ROE) is expected over the next 3 years.
- Cash flow for Larsen & Toubro is expected to increase but not above the 50% threshold in 2 years time.
- Larsen & Toubro's earnings are expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
- Larsen & Toubro's earnings growth is positive but not above the India market average.
- Larsen & Toubro's earnings are expected to decrease over the next year.
- Larsen & Toubro's net income is expected to increase but not above the 50% threshold in 2 years time.
- Larsen & Toubro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
- Larsen & Toubro's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Larsen & Toubro's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
- Larsen & Toubro's revenue growth is positive but not above the India market average.
health
- Larsen & Toubro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Larsen & Toubro is profitable, therefore cash runway is not a concern.
- Larsen & Toubro is profitable, therefore cash runway is not a concern.
- Debt is covered by short term assets, assets are 1.3x debt.
- Larsen & Toubro's cash and other short term assets cover its long term commitments.
- The level of debt compared to net worth has been reduced over the past 5 years (197.3% vs 184.9% today).
- Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).
- Low level of unsold assets.
- Debt is not well covered by operating cash flow (4.7%, less than 20% of total debt).
- Larsen & Toubro's level of debt (184.9%) compared to net worth is high (greater than 40%).
management
- The tenure for the Larsen & Toubro board of directors is about average.
- More shares have been bought than sold by Larsen & Toubro individual insiders in the past 3 months.
- The tenure for the Larsen & Toubro management team is about average.
- SNS's remuneration is higher than average for companies of similar size in India.
- SNS's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
past
- Larsen & Toubro's year on year earnings growth rate has been positive over the past 5 years.
- Larsen & Toubro has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
- Larsen & Toubro's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Larsen & Toubro used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.
- Larsen & Toubro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Larsen & Toubro's 1-year earnings growth is negative, it can't be compared to the IN Construction industry average.
value
- LT matched the Construction industry (-40%) over the past year.
- Larsen & Toubro's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
- Larsen & Toubro's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
- Larsen & Toubro is overvalued based on assets compared to the IN Construction industry average.
- Larsen & Toubro is poor value based on expected growth next year.
- Larsen & Toubro is overvalued based on earnings compared to the IN Construction industry average.
- Larsen & Toubro is overvalued based on earnings compared to the India market.
- LT underperformed the Market in India which returned -14.5% over the past year.
- NSEI:LT is up 3.5% underperforming the Construction industry which returned 7.1% over the past month.
- NSEI:LT is up 3.5% underperforming the market in India which returned 8% over the past month.
