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Larsen & Toubro Ltd
OTC:LTOUF

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Larsen & Toubro Ltd Logo
Larsen & Toubro Ltd
OTC:LTOUF
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Price: 40.39 USD
Updated: Mar 28, 2024

Intrinsic Value

Larsen & Toubro Ltd. is an investment holding company, which engages in technology, engineering, construction, manufacturing, and financial activities. [ Read More ]

The intrinsic value of one LTOUF stock under the Base Case scenario is 34.44 USD. Compared to the current market price of 40.39 USD, Larsen & Toubro Ltd is Overvalued by 15%.

Key Points:
LTOUF Intrinsic Value
Base Case
34.44 USD
Overvaluation 15%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Larsen & Toubro Ltd

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Fundamental Analysis

Strong Q3 Growth Despite Margin Pressures
2024-Q3 Earnings Call

Strong Q3 Growth Despite Margin Pressures

In Q3 FY '24, revenues rose by 26% to INR 393 billion year-over-year (YoY), driven by robust execution and strategic growth in orders across sectors such as renewable EPC, water utilities, and airports, topping INR 432 billion―a 33% increase YoY. EBITDA margin slightly decreased to 10.4% due to legacy project costs but improved sequentially. Recurring PAT jumped by 20% to INR 29 billion due to strong momentum and tax efficiencies, while the net working capital (NWC) to sales ratio improved by 240 basis points to 16.6%. Return on equity (ROE) improved by 280 basis points YoY to 15.2%, with plans for regular shareholder returns as part of a continued focus on cash generation and divestments. Infrastructure and energy segments showed robust revenue growth, 27% and 24% respectively, while IT segment growth was modest at 5%. L&T Finance Holdings, after major mergers, sets a stage for growth with strong retail disbursement.

Financials

Balance Sheet Decomposition
Larsen & Toubro Ltd

Current Assets 2.1T
Cash & Short-Term Investments 513.9B
Receivables 828.8B
Other Current Assets 746.8B
Non-Current Assets 1.1T
Long-Term Investments 153.4B
PP&E 176B
Intangibles 256.6B
Other Non-Current Assets 555.7B
Current Liabilities 1.7T
Accounts Payable 445.2B
Short-Term Debt 361.5B
Other Current Liabilities 865.9B
Non-Current Liabilities 774.6B
Long-Term Debt 602.8B
Other Non-Current Liabilities 171.7B
Efficiency

Earnings Waterfall
Larsen & Toubro Ltd

Revenue
2.1T INR
Cost of Revenue
-1.4T INR
Gross Profit
729.8B INR
Operating Expenses
-534B INR
Operating Income
195.8B INR
Other Expenses
-69.3B INR
Net Income
126.5B INR

Free Cash Flow Analysis
Larsen & Toubro Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

LTOUF Profitability Score
Profitability Due Diligence

Larsen & Toubro Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
56/100
Profitability
Score

Larsen & Toubro Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

LTOUF Solvency Score
Solvency Due Diligence

Larsen & Toubro Ltd's solvency score is 45/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Positive Net Debt
Average Altman Z-Score
45/100
Solvency
Score

Larsen & Toubro Ltd's solvency score is 45/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LTOUF Price Targets Summary
Larsen & Toubro Ltd

Wall Street analysts forecast LTOUF stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LTOUF is 47.25 USD with a low forecast of 23.09 USD and a high forecast of 56.35 USD.

Lowest
Price Target
23.09 USD
43% Downside
Average
Price Target
47.25 USD
17% Upside
Highest
Price Target
56.35 USD
40% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

LT Price
Larsen & Toubro Ltd

1M 1M
+8%
6M 6M
+25%
1Y 1Y
+76%
3Y 3Y
+171%
5Y 5Y
+194%
10Y 10Y
+408%
Annual Price Range
3 763.9
52w Low
2 133.6
52w High
3 763.9
Price Metrics
Average Annual Return 14.73%
Standard Deviation of Annual Returns 24.19%
Max Drawdown -54%
Shares Statistics
Market Capitalization 5.2T INR
Shares Outstanding 1 375 985 100
Percentage of Shares Shorted
N/A

LT Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Larsen & Toubro Ltd Logo
Larsen & Toubro Ltd

Country

India

Industry

Construction

Market Cap

5.2T USD

Dividend Yield

0.71%

Description

Larsen & Toubro Ltd. is an investment holding company, which engages in technology, engineering, construction, manufacturing, and financial activities. The company is headquartered in Mumbai, Maharashtra and currently employs 40,253 full-time employees. The Company’s segments include Infrastructure, Power, Heavy Engineering and Defense Engineering. The Infrastructure segment is engaged in engineering and construction of buildings and factories, transportation infrastructure and heavy civil infrastructure. The Power segment offers solutions for coal-based and gas-based thermal power plants. The Heavy Engineering segment manufactures and supplies custom-designed, engineered critical equipment and systems. The Defense Engineering segment is engaged in designing, development, serial production and supporting of equipment, systems and platforms for defense and aerospace sectors. The company also includes communication projects, hydrocarbon, marketing and servicing of construction and mining machinery and parts, and manufacture and sale of rubber processing machinery.

Contact

MAHARASHTRA
Mumbai
L&T House, Ballard Estate, P. O. Box: 278,
+912267525656.0
http://www.larsentoubro.com/

IPO

1994-11-03

Employees

40 253

Officers

MD & Chairman
Mr. Sekharipuram Narayanan Subrahmanyan
CFO & Whole-Time Director
Mr. Ramamurthi Shankar Raman
Senior EVP of Energy & Whole-Time Director
Mr. Subramanian Sarma
Senior EVP of Buildings & Whole-Time Director
Mr. M. V. Satish
Senior EVP of Utilities & Whole-Time Director
Mr. Tharayil Madhava Das B.Tech.
Senior EVP of Civil Infrastructure & Whole-Time Director
Mr. Sudhindra Vasantrao Desai
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Sr. VP & Head of Heavy Engineering
Mr. Anil V. Parab
Technical Head
Marnix Coomans
Head of Administration
Bahadur Hitendra
Vice President of Corporate Accounts & Investor Relations
Mr. Parameswaran Ramakrishnan
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See Also

Discover More
What is the Intrinsic Value of one LTOUF stock?

The intrinsic value of one LTOUF stock under the Base Case scenario is 34.44 USD.

Is LTOUF stock undervalued or overvalued?

Compared to the current market price of 40.39 USD, Larsen & Toubro Ltd is Overvalued by 15%.