Stock Performance and Market Context
On 24 Feb 2026, Larsen & Toubro Ltd. (Stock ID: 837957) recorded its highest price in the last 52 weeks at Rs.4440, marking a notable advance from its 52-week low of Rs.2967.65. This represents a remarkable appreciation of approximately 49.7% from the low point within the year. The stock’s performance over the past 12 months stands at 34.79%, significantly outperforming the Sensex’s 10.96% gain during the same period.
Despite the broader market facing pressure, with the Sensex falling by 465.21 points (-0.85%) to close at 82,587.33 after a negative opening, Larsen & Toubro maintained its upward trajectory. The Sensex remains 4.32% below its own 52-week high of 86,159.02, highlighting the relative strength of Larsen & Toubro’s shares amid a cautious market environment.
The stock’s day change was marginally negative at -0.61%, reflecting a slight pullback after two consecutive days of gains. However, Larsen & Toubro continues to trade above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bullish momentum.
Our latest weekly pick is out! This Large Cap from Steel/Sponge Iron/Pig Iron delivered with target price and complete analysis. See what makes this week's selection special!
- - Latest weekly selection
- - Target price delivered
- - Large Cap special pick
Financial Metrics Underpinning the Rally
Larsen & Toubro’s recent price surge is supported by strong financial fundamentals. The company boasts a high Return on Capital Employed (ROCE) of 15.16%, reflecting efficient capital utilisation and profitability. The half-yearly ROCE peaked at 14.84%, further reinforcing the company’s operational effectiveness.
Net sales have demonstrated healthy long-term growth, expanding at an annual rate of 16.00%. This steady increase in revenue underlines the company’s ability to scale its operations in a competitive construction sector. Additionally, the company’s debtors turnover ratio stands at a robust 5.05 times, indicating effective management of receivables and cash flow.
Financial leverage remains well-managed with a debt-to-equity ratio of 1.32 times, the lowest in recent half-yearly assessments, suggesting a balanced capital structure that supports sustainable growth without excessive risk.
Valuation metrics also favour the stock’s current price level. Larsen & Toubro’s Enterprise Value to Capital Employed ratio is 3.9, indicating a fair valuation relative to its peers. The company’s PEG ratio of 1.7 reflects a reasonable price-to-earnings growth balance, considering its profit growth of 21% over the past year.
Market Position and Institutional Support
With a market capitalisation of Rs.6,07,553 crore, Larsen & Toubro is the largest company in the construction sector, representing 43.09% of the sector’s total market cap. Its annual sales of Rs.2,77,504.43 crore account for nearly 60% of the industry’s revenue, underscoring its dominant market presence.
Institutional investors hold a significant 63.3% stake in the company, reflecting strong confidence from entities with extensive analytical resources. This high level of institutional ownership often correlates with greater stock stability and informed market participation.
The stock’s performance has been consistently market-beating, not only over the past year but also across longer time horizons. Larsen & Toubro has outperformed the BSE500 index over the last three years, one year, and three months, demonstrating resilience and growth leadership within its sector.
Want to dive deeper on Larsen & Toubro Ltd.? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Recent Rating Upgrade and Market Sentiment
Reflecting its strong fundamentals and market performance, Larsen & Toubro’s Mojo Grade was upgraded from Hold to Buy on 17 Feb 2026, with a current Mojo Score of 75.0. This upgrade highlights improved confidence in the company’s prospects based on comprehensive analysis of its financial health and market position.
The company’s Market Cap Grade remains at 1, indicating its status as a large-cap heavyweight within the construction sector. Despite a slight dip in the stock price today, the overall trend remains positive, supported by the stock’s position above all major moving averages.
The broader market context shows the Sensex trading below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling a mixed but cautiously optimistic market environment. Larsen & Toubro’s relative strength in this setting further emphasises its leadership role.
Summary of Key Performance Indicators
Larsen & Toubro’s key financial and market metrics as of 24 Feb 2026 include:
- New 52-week and all-time high price: Rs.4440
- One-year stock return: 34.79%
- Sensex one-year return: 10.96%
- ROCE: 15.16%
- Half-yearly ROCE: 14.84%
- Net sales annual growth rate: 16.00%
- Debtors turnover ratio (HY): 5.05 times
- Debt-to-equity ratio (HY): 1.32 times
- PEG ratio: 1.7
- Market capitalisation: Rs.6,07,553 crore
- Institutional holdings: 63.3%
These figures collectively illustrate the company’s strong operational efficiency, market dominance, and valuation attractiveness that have driven the stock to its recent peak.
Conclusion
Larsen & Toubro Ltd.’s ascent to a new 52-week high of Rs.4440 marks a significant milestone in its market journey. Supported by solid financial metrics, a commanding market position, and a recent upgrade in rating, the stock’s performance reflects sustained momentum in a challenging market environment. Trading above all major moving averages and outperforming key indices, Larsen & Toubro continues to demonstrate resilience and strength within the construction sector.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
