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Larsen & Toubro Limited

LTConstruction

Fundamental Score

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Larsen & Toubro Limited Share Price & Market Analysis

Current Market Price (CMP)
3678.40
No change data available
Market Cap
5.06L (Cr)
Industry
Construction

Profitability Metrics

Good

Return on Equity

16.55%
Poor

Return on Capital Employed

14.49%
Excellent

Operating Profit Margin (5Y)

14.49%
Average

Dividend Yield

0.93%

Valuation Metrics

Poor

Price to Earnings

32.54x

Market Capitalization

5.06L (Cr)

Industry P/E

20.60x

Growth Metrics

Excellent

YoY Quarterly Profit Growth

29.85%
Average

YoY Quarterly Sales Growth

15.53%
Good

Sales Growth (5Y)

11.95%
Average

EPS Growth (5Y)

10.18%
Poor

Profit Growth (5Y)

9.73%

Financial Health

Poor

Debt to Equity

1.36x
Excellent

Interest Coverage

3.47x
Excellent

Free Cash Flow (5Y)

76.93K (Cr)

Ownership Structure

Poor

Promoter Holding

0.00%
Good

FII Holding

19.33%
Excellent

DII Holding

43.48%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
0.00%
Promoter Holding
5.06L (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of LT across key market metrics for learning purposes.

Positive Indicators

6 factors identified

Strong Return on Equity (16.55%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Robust Profit Growth (29.85%)

Observation: Strong year-over-year profit expansion demonstrates business momentum.

Analysis: Profit growth >20% indicates effective execution and market opportunity capture. This suggests positive business trajectory.

Strong Revenue Growth (15.53%)

Observation: Healthy sales growth indicates market demand and execution capability.

Analysis: Revenue growth >15% suggests strong market position and growth potential. This indicates business expansion success.

Strong Cash Generation (₹76934.58 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Strong Institutional Confidence (FII+DII: 62.81%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

3 factors identified

Elevated Debt Levels (D/E: 1.36)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Low Promoter Commitment (0.00%)

Observation: Reduced promoter stake may indicate limited confidence.

Analysis: Low promoter holding may raise questions about management commitment and long-term vision alignment.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

📊 Educational Market Overview

Disclaimer: The ratings and scores are generated algorithmically from publicly available market data and are provided for educational and informational purposes only. They do not constitute investment advice, recommendation, or solicitation to buy/sell any securities.

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Financial Statements

Comprehensive financial data for Larsen & Toubro Limited

About LT

Company Details

Symbol:LT
Industry:Construction
Sector:Civil Construction

Market Information

Market Cap:5.06L (Cr)
P/E Ratio:32.54
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:0.93%

LT Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)16.55%
Return on Capital Employed14.49%
Operating Profit Margin (5Y)14.49%
Debt to Equity Ratio1.36
Interest Coverage Ratio3.47

Growth & Valuation

Sales Growth (5Y)11.95%
Profit Growth (5Y)9.73%
EPS Growth (5Y)10.18%
YoY Quarterly Profit Growth29.85%
YoY Quarterly Sales Growth15.53%

Frequently Asked Questions

What is the current price of LT?

LT is currently trading at ₹3678.40 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of LT shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of LT and what does it mean?

LT has a P/E ratio of 32.54x compared to the industry average of 20.60x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹33 for every ₹1 of annual earnings. This is higher than the industry average, suggesting either growth premium or potential overvaluation.

How is LT performing according to Bull Run's analysis?

LT has a Bull Run fundamental score of 42.8/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 16.55%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does LT belong to?

LT operates in the Construction industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting Larsen & Toubro Limited. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for LT?

LT has an ROE of 16.55%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Larsen & Toubro Limited generates profits from shareholders' equity. An ROE of 17% means the company generates ₹17 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is LT's debt-to-equity ratio and what does it indicate?

LT has a debt-to-equity ratio of 1.36, which indicates high leverage that increases financial risk. This means the company has ₹136 of debt for every ₹100 of equity. Higher leverage can amplify returns during good times but increases bankruptcy risk during downturns.

What is LT's dividend yield and is it a good dividend stock?

LT offers a dividend yield of 0.93%, which means you receive ₹0.93 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has LT grown over the past 5 years?

LT has achieved 5-year growth rates of: Sales Growth 11.95%, Profit Growth 9.73%, and EPS Growth 10.18%. These growth metrics show the company's ability to expand its business and improve profitability over time. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in LT and why does it matter?

Promoters hold 0.00% of LT shares, with 0.00% of promoter shares pledged. This promoter holding level suggests balanced ownership between management and public shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: 0.00%.

How does LT compare with its industry peers?

LT trades at P/E 32.54x vs industry average 20.60x, with ROE of 16.55% and ROCE of 14.49%. The stock trades at a premium to industry average, which may be justified by superior fundamentals. Peer comparison helps identify whether LT is outperforming its competitive set in profitability, growth, and valuation metrics.

What is LT's market capitalization and what category does it fall into?

LT has a market capitalization of ₹505871 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for LT?

Key ratios for LT: ROE 16.55% (Excellent), ROCE 14.49%, P/E 32.54x, Debt-to-Equity 1.36, Interest Coverage 3.47x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is LT stock and what is its beta?

LT has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for LT?

LT has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹3678.40, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in LT?

Key risks for LT include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 1.36), and operational challenges. The stock has a Fundamental Score of 42.8/100, indicating higher risk requiring thorough due diligence. Sector-specific risks in Construction include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is LT's operating profit margin and how has it trended?

LT has a 5-year average Operating Profit Margin (OPM) of 14.49%, which is good and shows decent operational efficiency. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. Monitor margin trends to assess management's ability to control costs and improve efficiency. Compare with industry peers to understand relative performance.

How is LT's quarterly performance in terms of sales and profit growth?

LT's recent quarterly performance shows YoY Sales Growth of 15.53% and YoY Profit Growth of 29.85%. This strong double-digit growth indicates excellent business momentum and management execution. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in LT?

LT has FII holding of 19.33% and DII holding of 43.48%, totaling 62.81% institutional ownership. High institutional holding indicates professional validation of business quality and growth prospects. Significant FII holding suggests global investor confidence and potential for index inclusion. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.