ScoreWhy is Larsen & Toubro Ltd. ?
1
High Management Efficiency with a high ROCE of 16.31%
2
Healthy long term growth as Net Sales has grown by an annual rate of 15.03%
3
Flat results in Jun 26
- OPERATING PROFIT TO INTEREST (Q) Lowest at 3.17 times
- NON-OPERATING INCOME(Q) is 34.33 % of Profit Before Tax (PBT)
4
With ROCE of 20.6, it has a Attractive valuation with a 3.8 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 7.46%, its profits have risen by 14.9% ; the PEG ratio of the company is 2.1
5
High Institutional Holdings at 62.4%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
With its market cap of Rs 5,40,710 cr, it is the biggest company in the sector and constitutes 36.57% of the entire sector
- Its annual Sales of Rs 290,137.13 are 59.69% 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
7.46%
0.30
25.20%
Sensex
-4.36%
-0.32
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.03%
EBIT Growth (5y)
10.00%
EBIT to Interest (avg)
2.87
Debt to EBITDA (avg)
4.52
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
0.99
Tax Ratio
26.71%
Dividend Payout Ratio
32.50%
Pledged Shares
0
Institutional Holding
62.40%
ROCE (avg)
15.74%
ROE (avg)
13.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
42
Price to Book Value
4.96
EV to EBIT
18.40
EV to EBITDA
16.18
EV to Capital Employed
3.80
EV to Sales
2.02
PEG Ratio
2.05
Dividend Yield
NA
ROCE (Latest)
20.58%
ROE (Latest)
15.84%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
ROCE(HY)
Highest at 15.99%
DEBT-EQUITY RATIO(HY)
Lowest at 1.15 times
-4What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 3.17 times
NON-OPERATING INCOME(Q)
is 34.33 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Larsen & Toubro
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
Operating Profit to Interest - Quarterly
Lowest at 3.17 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Non Operating Income - Quarterly
is 34.33 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 2,376.73 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."
