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

With LT's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

Financial Ratios:

currentRatio 1.253000
forwardPE 24.722279
debtToEquity 111.847000
earningsGrowth 0.156000
revenueGrowth 0.107000
grossMargins 0.363220
operatingMargins 0.102340
trailingEps 119.300000
forwardEps 104.420000

Larsen & Toubro Limited's current ratio is 1.253, signaling that the company has sufficient cash reserves and current assets to cover its short-term debt obligations. This suggests financial stability, as Larsen & Toubro Limited should not face any issues meeting its short-term liabilities with available resources.
Larsen & Toubro Limited's Forward PE ratio is favorable, meaning the stock price aligns well with earnings and isn't overvalued. This allows room for growth, making it an attractive investment for those seeking potential upside while ensuring the stock is not overpriced.
LT's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
LT's positive earnings and revenue growth signal that the company is expected to expand its business. This healthy financial trend reflects an optimistic outlook, suggesting continued growth in both sales and profits for LT.
LT's forward EPS being lower than trailing EPS indicates reduced profitability in the upcoming year. This points to a potential decline in earnings, which could impact the company's financial strength.

Price projections:

Price projections for LT
Price projections for LT

Over time, price projections for LT have been gradually revised upward, reflecting increasing optimism about the company's future performance. This trend suggests analysts are growing more confident in LT's ability to deliver strong results and achieve higher market value.

Recommendation changes over time:

Recommendations trend for LT
Recommendations trend for LT


The recent buy bias from analysts suggests LT is seen as a strong investment, encouraging more investors to consider it. With this favorable sentiment, LT appears to be a reliable option for parking money, offering stability and long-term growth potential in the stock market.