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 23.350939
debtToEquity 111.847000
earningsGrowth 0.156000
revenueGrowth 0.107000
grossMargins 0.363220
operatingMargins 0.102340
trailingEps 119.050000
forwardEps 160.327600

With a current ratio 1.253, LT demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
LT's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
Larsen & Toubro Limited's elevated debt-to-equity ratio highlights its heavy reliance on debt. This high leverage increases the company's exposure to financial risk, making it more vulnerable to market fluctuations and economic downturns.
Positive earnings and revenue growth for LT suggest that the company is positioned for business expansion. The company's strong financial performance indicates sustained growth, as increasing sales and profits fuel its future success.
With LT's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in LT's growth potential, as improved earnings are forecasted compared to the prior year's performance.

Price projections:

Price projections for LT
Price projections for LT

The steady upward revision of LT's price projections indicates growing confidence in the company's future. Analysts are increasingly optimistic about LT's potential to deliver strong results and increased market value.

Recommendation changes over time:

Recommendations trend for LT
Recommendations trend for LT


LT has received a favorable buy bias from analysts recently, positioning it as a solid investment opportunity. This sentiment may attract more investors, who view LT as a stable option to park their money and potentially benefit from the company's continued growth and profitability.