Larsen & Toubro Hits 52-Week Low Amid Ongoing Market Challenges and Debt Concerns

Larsen & Toubro, a prominent player in the capital goods industry, has experienced significant market activity today, hitting a new 52-week low of Rs 2,967.65. This decline marks a notable performance dip, as the stock has fallen consecutively for six days, resulting in a total decrease of 13.25% during this period. Today, it opened with a gap down of 4.89% and reached an intraday low of Rs 2,967.65, reflecting an 8.95% drop.
Despite this downturn, Larsen & Toubro outperformed its sector by 5.78%. However, the stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Over the past year, the stock has underperformed the market, with a return of -18.73% compared to the Sensex's -2.28%.

The company's financial metrics reveal a high Debt to EBITDA ratio of 3.31 times, raising concerns about its ability to service debt. Nevertheless, it maintains a strong market position with a market cap of Rs 4,48,197 crore, accounting for 39.42% of the capital goods sector.