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 5.01%, 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 5.01% 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 5,48,506 cr, it is the biggest company in the sector and constitutes 41.36% 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
16.53%
0.23
21.43%
Sensex
-5.13%
0.43
11.83%
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
32.50%
Pledged Shares
0
Institutional Holding
62.36%
ROCE (avg)
15.74%
ROE (avg)
13.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
47
Price to Book Value
5.29
EV to EBIT
19.63
EV to EBITDA
17.26
EV to Capital Employed
4.04
EV to Sales
2.18
PEG Ratio
1.87
Dividend Yield
NA
ROCE (Latest)
20.58%
ROE (Latest)
15.84%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
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
