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Fundamentals for Larsen & Toubro Limited
Last Updated:
2025-07-16 19:42
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 With Larsen & Toubro Limited's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.
Financial Ratios:
currentRatio
1.215000
forwardPE
22.324492
debtToEquity
114.735000
earningsGrowth
0.250000
revenueGrowth
0.109000
grossMargins
0.365570
operatingMargins
0.109480
trailingEps
109.270000
forwardEps
104.420000
The current ratio for Larsen & Toubro Limited is 1.215, indicating that the company can service its short-term debt using available cash and assets. This suggests Larsen & Toubro Limited has strong liquidity, with more than enough resources to meet its immediate financial commitments. With Larsen & Toubro Limited's Forward PE in a favorable range, the stock appears reasonably priced compared to its earnings. This suggests that it's not overpriced and there is room for growth, providing an encouraging opportunity for investors seeking future value increases. LT's high debt-to-equity ratio signals significant reliance on debt to finance its operations. This heavy leverage can increase financial risk, especially if the company faces a decline in revenue or struggles to meet its debt obligations. Positive earnings and revenue growth for Larsen & Toubro Limited 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. Larsen & Toubro Limited's forward EPS being lower than its trailing EPS suggests the company is expected to see reduced profitability in the current financial year compared to the previous one. This signals a potential decline in earnings, raising concerns about future financial performance.
Price projections:
Price projections for LT The price of LT has consistently been close to the lower limit of expectations. This trend may point to challenges in the company's performance, leading to concerns about its future growth potential.
Insider Transactions:
Insider Transactions for LT
2 sales of LT stock were made, with market price at 3741.27490234375 per share.There were 2 buy transactions of Larsen & Toubro Limited, with market price at 3348.5250244140625.More buys than sells near the current price levels of LT might signal a favorable outlook for the stock. Investors seem to be showing confidence by purchasing more, potentially expecting positive future performance.
Recommendation changes over time:
Recommendations trend for LT
Analysts have been favoring LT with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning LT as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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