LT.NS
Larsen & Toubro Ltd. (LT.NS) represents a robust presence in India's infrastructure and manufacturing sectors, with a substantial market capitalization of ₹4,986.70 billion. The stock's Price-to-Earnings (P/E) ratio is 36.94, suggesting moderate investor expectation for the company's earnings relative to its stock price. The Return on Equity (ROE) of 16.10% indicates that the company is generating reasonable profits for its shareholders, despite the debt-to-equity ratio being relatively high at 119.06. This high level of debt implies that L&T significantly utilizes debt to fund its operations and growth, but efficient management helps leverage this financing effectively.
The current ratio of 1.173 signifies L&T's adequate capability to meet its short-term financial obligations, while an operating margin of 10.28% highlights the company's efficiency in its core business operations, although there could be room for improvement. With free cash flow standing at ₹175.53 billion, the company showcases a strong ability to invest in strategic projects and innovations. The earnings growth at 7.7% suggests a steady growth trajectory, albeit below some industry peers.
L&T's revenue growth rate of 20.1% demonstrates a strong ability to enhance sales, indicating promising expansion potential. However, a lower EBITDA margin of 11.66% may point towards higher operational costs or competitive pricing pressures within the industry. Institutional confidence remains robust, as evidenced by nearly 49.01% of shares being held by institutional investors, reflecting strong external confidence in L&T's business outlook.
This analysis provides a comprehensive view of L&T's financial standing and operational performance, equipping potential investors with insights into the company's market presence and prospects for long-term growth.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 4814.88 B |
| P/E Ratio | 35.71 |
| ROE | 16.10 % |
| Debt to Equity | 119.062 |
| Operating Margin | 10.28 % |
| Free Cash Flow | 175.53 B |
| Institutional Holdings | 48.01 % |
| Revenue Growth | 20.10 % |
Larsen & Toubro's Competitive Landscape Across Various Segments:
- Heavy Engineering and Construction: L&T is a leader in the infrastructure and construction industry in India, facing competition from both domestic and international players.
- Information Technology and Technology Services: Through its subsidiaries like LTI and Mindtree, L&T competes with major IT service providers.
- Manufacturing and Defense: L&T ventures into manufacturing equipment and defense technology, offering competitive products against both domestic and international players.
- Financial Services: Through its arm L&T Finance Holdings, L&T extends services in wealth management, retail finance, and infrastructure finance.
Larsen & Toubro continues to hold a strong position in the diversified sectors it operates in, owing to its robust execution capabilities, broad industry presence, and strong brand reputation. However, the company faces significant competition from established domestic giants and emerging players. Continuous innovation, strategic partnerships, and technology adoption are crucial for maintaining its competitive edge in the evolving market landscape.
Disclaimer: The information provided here is for educational and informational purposes only. While we strive to ensure the accuracy and reliability of the data, we do not make any guarantees regarding its completeness or accuracy. The analysis and metrics provided should not be considered as investment advice, and any actions taken based on this information are at your own risk. We do not assume responsibility for any financial losses or other damages incurred from the use of this data. Please consult with a qualified financial advisor before making any investment decisions.