Larsen & Toubro Ltd.
NSE: LTLarsen & Toubro Ltd.: A 30-second snapshot
Larsen and Toubro (LT) is an infrastructure and engineering conglomerate trading at Rs 4,209.40, up 17.34% over the past 12 months and 23.76% over the past 3 months. Trailing PE stands at 35.98 against a forward PE of 22.95, with price above both the 50-DMA (Rs 3,990) and 200-DMA (Rs 3,890). Despite robust revenue growth of 11.7% annually over 5 years, cumulative 5-year earnings contracted 34.5% and net profit margin stands at 5.52%.
P/E
36.0
Forward P/E
22.9
ROE
+16.9%
Debt / Equity
97.64
Profit Margin
+5.5%
Div. Yield
+0.9%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
52/100
News
8 headlines · 6 positive · 0 negative
NCLT Mumbai Clears First Motion For L&T Realty Business Demerger Into Wholly Owned Subsidiary - LiveLawBiz
LiveLawBiz
TN govt signs ₹18,600 cr MoU with L&T - BusinessLine
BusinessLine
L&T pledges to invest Rs 18,600 crore in Tamil Nadu - Deccan Herald
Deccan Herald
Tamil Nadu signs Rs 18,600 crore MoU with Larsen & Toubro for data centre, shipbuilding projects - The Economic Times
The Economic Times
L&T GeoStructure business wins domestic orders worth up to ₹2,500 crore - CNBC TV18
CNBC TV18
Recent context
- ·NCLT Mumbai approved the first motion for LT Realty demerger into a wholly owned subsidiary (June 2026), a structural step that may clarify segment-level profitability over time.
- ·Tamil Nadu government signed an Rs 18,600 crore MoU with LT for data centre and shipbuilding investments (June 2026), extending the company's presence beyond traditional EPC infrastructure.
- ·LT GeoStructure won domestic orders worth up to Rs 2,500 crore (May 2026), contributing to the order-book momentum that supports the revenue growth trajectory observed over 5 years.
Strengths
- +Revenue has compounded at 11.7% annually over 5 years, reflecting sustained order-book execution across infrastructure, defence, and energy verticals.
- +Free cash flow was positive in 4 of the tracked years, indicating that capital-intensive project cycles have not consistently impaired cash generation.
- +At a trailing PE of 35.98, LT trades at the lowest multiple among its 6 tracked infrastructure peers: BEL (51.57), ABB (98.83), CGPOWER (124.84), Siemens Energy India (104.35), and Cummins India (68.91).
- +Recent order wins include an Rs 18,600 crore Tamil Nadu MoU covering data centres and shipbuilding, domestic GeoStructure orders of up to Rs 2,500 crore, and NCLT clearance for the realty business demerger, indicating active portfolio restructuring.
Weaknesses
- −5-year cumulative earnings growth of -34.5% against 11.7% revenue growth indicates sustained margin compression; net profit margin of 5.52% has not recovered over this period.
- −Debt-to-equity of 97.64 is structurally elevated even accounting for financial-services subsidiary leverage, representing a material divergence from standalone capital-goods peers.
- −ROE exceeded 15% in only 2 of the tracked years; the quality score of 24 ranks last among the 6 infrastructure peers monitored, with the nearest competitor (CGPOWER) scoring 45.
- −Consistency score of 73 and limited years of ROE above threshold point to earnings volatility that creates forecasting risk relative to the premium embedded in a 35.98x trailing multiple.
Open questions
- ?Does the 5-year earnings contraction of 34.5% reflect a temporary margin headwind from mix shift toward lower-margin segments, or a structural deterioration in pricing power?
- ?How much of the elevated debt-to-equity of 97.64 is attributable to ring-fenced financial-services subsidiaries, and what is the recourse exposure to the parent balance sheet?
- ?Given that the forward PE of 22.95 is materially below the trailing PE of 35.98, what earnings recovery assumptions are embedded, and over what time horizon do analysts expect that inflection?
- ?Does the realty demerger and ongoing portfolio restructuring change the quality score trajectory relative to peers, or does the conglomerate structure continue to dilute capital efficiency?
Peer comparison: Infrastructure
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LT | Larsen & Toubro Ltd.You're viewing | 36.0 | +16.9% | 24 |
| Industry avg | across 5 peers | 89.7 | +25.5% | 52 |
| CUMMINSIND | Cummins India Ltd. | 68.9 | +29.5% | 69 |
| ENRIN | Siemens Energy India Ltd. | 104.3 | — | 51 |
| BEL | Bharat Electronics Ltd. | 51.6 | +27.6% | 49 |
| ABB | ABB India Ltd. | 98.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 124.8 | +19.6% | 45 |
Technical state
Current price
₹4,209.40
SMA 50
₹3,990.28
SMA 200
₹3,889.64
RSI (14)
66.3 (neutral)
From 52w high
-4.3%
1Y return
+17.3%
3M return
+23.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year cumulative earnings growth of -34.5% against 11.7% revenue growth marks a persistent revenue-profit divergence. Net profit margin of 5.52% is thin for a conglomerate of this scale, and has not recovered despite compounding revenue over the measurement period.
- highDebt-to-equity ratio of 97.64 is structurally elevated. LT operates financial-services subsidiaries that inflate consolidated leverage, but group-level debt at this scale warrants scrutiny of subsidiary debt maturity profiles and recourse provisions relative to standalone earnings capacity.
- mediumROE exceeded 15% in only 2 of the tracked years despite a trailing ROE of 16.95%, signalling an inconsistent capital-efficiency profile. Quality score of 24 ranks last (6th of 6) among infrastructure sector peers: Cummins India (69), BEL (49), Siemens Energy India (51), ABB (47), and CGPOWER (45) all score materially higher.
- lowRSI at 66.3 is approaching the upper end of the neutral band. Price is 23.76% higher over 3 months and 4.27% below the 52-week high, with a single resistance level identified at 4,397.05, leaving limited overhead before a multi-year high test.
Cross-section contradictions
- Revenue compounded at 11.7% over 5 years while 5-year cumulative earnings contracted 34.5%; the forward PE of 22.95 implicitly prices a profitability inflection that is not yet visible in trailing figures.
- News sentiment is uniformly positive (6 positive, 0 negative out of 8 articles) driven by large order wins and an Rs 18,600 crore Tamil Nadu MoU, while the quality score of 24 places the stock last among its six infrastructure peers.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days