ScoreWhy is Larsen & Toubro Ltd. ?
1
High Management Efficiency with a high ROCE of 15.16%
2
With ROCE of 17.5, it has a Attractive valuation with a 3.6 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 4.75%, its profits have risen by 19.2% ; the PEG ratio of the company is 1.8
3
High Institutional Holdings at 63.08%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Market Beating performance in long term as well as near term
- Along with generating 4.75% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
5
With its market cap of Rs 5,48,430 cr, it is the biggest company in the sector and constitutes 41.80% of the entire sector
- Its annual Sales of Rs 270,722.51 are 59.73% of the industry
Real-Time Research ReportHow much should you buy?
- 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?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Larsen & Toubro
5.14%
0.22
21.41%
Sensex
4.72%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.31%
EBIT Growth (5y)
9.10%
EBIT to Interest (avg)
2.74
Debt to EBITDA (avg)
4.75
Net Debt to Equity (avg)
0.70
Sales to Capital Employed (avg)
0.93
Tax Ratio
25.04%
Dividend Payout Ratio
31.09%
Pledged Shares
0
Institutional Holding
63.08%
ROCE (avg)
14.93%
ROE (avg)
13.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
38
Price to Book Value
5.41
EV to EBIT
20.58
EV to EBITDA
18.05
EV to Capital Employed
3.60
EV to Sales
2.29
PEG Ratio
1.78
Dividend Yield
0.85%
ROCE (Latest)
17.47%
ROE (Latest)
15.82%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
PAT(Latest six months)
At Rs 7,543.28 cr has Grown at 22.04%
-6What is not working for the Company
OPERATING CF(Y)
Lowest at Rs 9,160.71 Cr
DPR(Y)
Lowest at 31.09%
DEBT-EQUITY RATIO(HY)
Highest at 7.04 times
Loading Valuation Snapshot...
Here's what is working for Larsen & Toubro
Profit After Tax (PAT) - Latest six months
At Rs 7,543.28 cr has Grown at 22.04%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Larsen & Toubro
Operating Cash Flow - Annually
Lowest at Rs 9,160.71 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 7.04 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 31.09%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income - Quarterly
Highest at Rs 1,384.28 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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