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 hold?
- 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
22.83%
0.23
21.43%
Sensex
8.49%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.00%
EBIT Growth (5y)
10.11%
EBIT to Interest (avg)
2.83
Debt to EBITDA (avg)
4.75
Net Debt to Equity (avg)
0.70
Sales to Capital Employed (avg)
0.93
Tax Ratio
27.09%
Dividend Payout Ratio
31.09%
Pledged Shares
0
Institutional Holding
63.30%
ROCE (avg)
14.93%
ROE (avg)
13.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
35
Price to Book Value
5.32
EV to EBIT
19.47
EV to EBITDA
17.14
EV to Capital Employed
3.54
EV to Sales
2.20
PEG Ratio
1.53
Dividend Yield
0.87%
ROCE (Latest)
17.47%
ROE (Latest)
15.82%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 14.84%
DEBTORS TURNOVER RATIO(HY)
Highest at 5.05 times
DEBT-EQUITY RATIO(HY)
Lowest at 1.32 times
PBT LESS OI(Q)
At Rs 5,719.94 cr has Grown at 31.04%
PAT(Q)
At Rs 4,099.65 cr has Grown at 22.1%
-1What is not working for the Company
EPS(Q)
Lowest at Rs 23.37
Loading Valuation Snapshot...
Here's what is working for Larsen & Toubro
Debtors Turnover Ratio- Half Yearly
Highest at 5.05 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 5,719.94 cr has Grown at 31.04%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 4,099.65 cr has Grown at 22.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 1.32 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
Earnings per Share (EPS) - Quarterly
Lowest at Rs 23.37
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Non Operating Income - Quarterly
Highest at Rs 1,441.04 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
