Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Engineering & Construction

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations in India and internationally. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Energy Projects segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning services for the oil and gas industry; coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages; and engineering, procurement, and construction solutions in green energy space. The Hi-Tech Manufacturing segment designs, manufactures/constructs, supplies, and revamps/retrofits engineered critical equipment and systems for the process plants, nuclear energy, and green hydrogen sectors; marine and land platforms, and related equipment and systems, as well as aerospace products and systems, and precision and electronics products and systems for defense, security, space, and industrial sectors; and electrolysers. The IT & Technology Services segment offers information technology and integrated engineering services, e-commerce/digital platforms and data centres, and semiconductor chip design solutions. The Financial Services segment provides retail and wholesale financing services. The Development Projects segment develops, operates, and maintains infrastructure projects; and engages in toll and fare collection, as well as power generation and development activities. The Others segment manufactures and sells industrial valves and rubber processing machinery; manufactures, markets and services construction equipment and parts; and markets and services mining machinery and parts. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.

Revenue projections:

Revenue projections for LT
Revenue projections for LT

Revenues for Larsen & Toubro Limited are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

Financial Ratios:

currentRatio 1.251000
forwardPE 21.966768
debtToEquity 97.640000
earningsGrowth -0.345000
revenueGrowth 0.117000
grossMargins 0.369060
operatingMargins 0.107070
trailingEps 116.970000
forwardEps 183.814030

LT's current ratio of 1.251 shows that the company has ample resources to service its short-term debt. This indicates a solid financial position, as LT can rely on its cash reserves and current assets to cover its immediate liabilities without strain.
LT's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
LT's high debt-to-equity ratio shows the company is significantly leveraged, relying heavily on debt financing. This raises the potential for increased financial risk, especially if the company's earnings or cash flow are negatively impacted.
Larsen & Toubro Limited's low earnings and revenue growth indicate potential profit shrinkage. This suggests that the company's financial performance may be weakening, raising concerns about its future profitability and overall business outlook.
LT's negative gross and operating margins suggest that the company is currently unprofitable, both in terms of production and overall operations. This could reflect rising costs or declining revenues, posing challenges for future profitability.
Larsen & Toubro Limited's forward EPS is higher than its trailing EPS, suggesting the company is expected to improve its profitability this financial year. This reflects growing confidence in Larsen & Toubro Limited's earnings potential, with forecasts indicating better financial performance than in the prior year.

Price projections:

Price projections for LT
Price projections for LT

LT's price has consistently remained near the lower edge of projections, suggesting that it is not fully meeting market expectations. This could indicate a need for improved performance or strategies to boost investor confidence.

Recommendation changes over time:

Recommendations trend for LT
Recommendations trend for LT


Analysts have shown a buy bias for Larsen & Toubro Limited, marking it as a favorable investment option. This could inspire investors to see Larsen & Toubro Limited as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.