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Larsen & Toubro Ltd
BSE:500510

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Larsen & Toubro Ltd
BSE:500510
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Price: 4 012.65 INR -2.03% Market Closed
Market Cap: ₹5.5T

EV/IC

2.2
Current
5%
More Expensive
vs 3-y average of 2.1

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.2
=
Enterprise Value
₹6.3T
/
Invested Capital
₹2.7T

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.2
=
Enterprise Value
₹6.3T
/
Invested Capital
₹2.7T

Valuation Scenarios

Larsen & Toubro Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (2.1), the stock would be worth ₹3 806.52 (5% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-38%
Maximum Upside
+4%
Average Downside
14%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.2 ₹4 012.65
0%
3-Year Average 2.1 ₹3 806.52
-5%
5-Year Average 1.8 ₹3 398.63
-15%
Industry Average 1.3 ₹2 478.99
-38%
Country Average 2.3 ₹4 174.3
+4%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
IN
Larsen & Toubro Ltd
BSE:500510
5.5T INR 2.2 33.9
JP
Sumitomo Densetsu Co Ltd
TSE:1949
35.2T JPY 2.5 19.9
US
Quanta Services Inc
NYSE:PWR
111B USD 5.4 108.1
FR
Vinci SA
PAR:DG
71.4B EUR 0.9 14.6
US
Comfort Systems USA Inc
NYSE:FIX
65.7B USD 12.5 53.7
IN
Larsen and Toubro Ltd
F:LTO
48.4B EUR 2.1 31.9
NL
Ferrovial SE
AEX:FER
42.2B EUR 2.3 47.5
ES
Ferrovial SA
MAD:FER
42.1B EUR 2.3 47.4
DE
Hochtief AG
XETRA:HOT
34.4B EUR 6 38.1
US
EMCOR Group Inc
NYSE:EME
40.2B USD 5.6 31.6
ES
ACS Actividades de Construccion y Servicios SA
MAD:ACS
31.9B EUR 1.3 33.7

Market Distribution

In line with most companies in India
Percentile
48th
Based on 2 828 companies
48th percentile
2.2
Low
0 — 1.3
Typical Range
1.3 — 4.2
High
4.2 —
Distribution Statistics
India
Min 0
30th Percentile 1.3
Median 2.3
70th Percentile 4.2
Max 4 185.7

Larsen & Toubro Ltd
Glance View

In the vibrant tapestry of India's industrial landscape, Larsen & Toubro Ltd. (L&T) has woven itself as a cornerstone, bearing witness to and actively participating in the nation’s growth. Founded by two Danish engineers in 1938, the company initially focused on engineering and construction. Over the decades, it has evolved into one of the largest and most respected conglomerates in India, spanning across diverse sectors. Headquartered in Mumbai, L&T operates with a strategic blend of innovation and resourcefulness, driven by its pillars of Engineering, Construction, Manufacturing, and Technology. The company manages to fuse traditional values with cutting-edge practices, nurturing major infrastructure projects that include roads, bridges, metros, and airports, thereby shaping the physical backdrop of India’s future. L&T's prowess is accentuated through its integrated business model, combining domain expertise with a vast geographical reach that extends well beyond India’s borders, into the Middle East and beyond. The company's financial health is fortified by its multi-disciplinary operations: construction and project execution drive a substantial revenue stream, while its foray into high-margin sectors such as technology services and financial services further bolster profitability. With a commitment to sustainability and innovation, L&T leverages its extensive R&D capabilities to stay ahead of the curve in a competitive market. The company’s manufacturing division, particularly in heavy engineering, supplies equipment for critical sectors like defense, nuclear power, and aerospace, thus making significant contributions to national capabilities and self-reliance. Thus, L&T stands not just as a business entity, but as a monumental force that underscores and accelerates the progress of an ambitious nation.

LT Intrinsic Value
3 968.39 INR
Overvaluation 1%
Intrinsic Value
Price ₹4 012.65
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