Larsen & Toubro Ltd
OTC:LTOUF
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%.
Valuation Backtest
Larsen & Toubro Ltd
Run backtest to discover the historical profit from buying and selling LTOUF stocks based on their intrinsic value.
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Fundamental Analysis
Strong Q3 Growth Despite Margin Pressures
2024-Q3 Earnings Call
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.
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 |
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
What is Free Cash Flow?
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.
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.
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
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.
Shareholder Return
LT Price
Larsen & Toubro Ltd
Average Annual Return | 14.73% |
Standard Deviation of Annual Returns | 24.19% |
Max Drawdown | -54% |
Market Capitalization | 5.2T INR |
Shares Outstanding | 1 375 985 100 |
Percentage of Shares Shorted |
N/A
|
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.