ScoreWhy is Larsen & Toubro Ltd. ?
1
High Management Efficiency with a high ROCE of 16.31%
2
Positive results in Mar 26
- ROCE(HY) Highest at 15.99%
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.19 times
- DEBT-EQUITY RATIO(HY) Lowest at 1.15 times
3
With ROCE of 20.6, it has a Fair valuation with a 3.9 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 21.08%, its profits have risen by 18% ; the PEG ratio of the company is 1.8
4
High Institutional Holdings at 62.36%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Market Beating Performance
- The stock has generated a return of 21.08% in the last 1 year, much higher than market (BSE500) returns of 4.64%
6
With its market cap of Rs 5,51,402 cr, it is the biggest company in the sector and constitutes 36.54% of the entire sector
- Its annual Sales of Rs 285,874.31 are 59.76% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Larsen & Toubro should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Larsen & Toubro for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Larsen & Toubro
21.08%
0.84
25.07%
Sensex
-3.59%
-0.27
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.02%
EBIT Growth (5y)
9.26%
EBIT to Interest (avg)
2.90
Debt to EBITDA (avg)
4.52
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
0.99
Tax Ratio
26.24%
Dividend Payout Ratio
31.09%
Pledged Shares
0
Institutional Holding
62.36%
ROCE (avg)
15.74%
ROE (avg)
13.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
41
Price to Book Value
5.06
EV to EBIT
18.83
EV to EBITDA
16.56
EV to Capital Employed
3.88
EV to Sales
2.09
PEG Ratio
1.78
Dividend Yield
0.85%
ROCE (Latest)
20.58%
ROE (Latest)
15.84%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 15.99%
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.19 times
DEBT-EQUITY RATIO(HY)
Lowest at 1.15 times
NET SALES(Q)
Highest at Rs 82,762.16 cr
PBDIT(Q)
Highest at Rs 10,419.02 cr.
PBT LESS OI(Q)
Highest at Rs 6,763.04 cr.
PAT(Q)
Highest at Rs 5,274.03 cr.
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Larsen & Toubro
Operating Profit to Interest - Quarterly
Highest at 4.19 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 82,762.16 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 10,419.02 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 6,763.04 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 5,274.03 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 1.15 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Larsen & Toubro
Non Operating Income - Quarterly
Highest at Rs 1,578.59 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
