Larsen & Toubro Fundamental Analysis : Unlocking Value

About the Company- Larsen & Toubro Fundamental Analysis

Larsen & Toubro Fundamental Analysis: Construction Site

Larsen & Toubro, a distinguished Indian multinational, commands a formidable presence in EPC Projects, Hi-Tech Manufacturing, and Services, with a staggering valuation of ₹4,11,327 Crores. They work in over 50 countries all around the world, showing just how big they are. They really care about making their customers happy and always aim to do top-quality work. That’s why they’ve been the best in their main businesses for a super long time – almost 80 years!

News Headlines

Larsen & Toubro Iconic Projects so Far

The Statue of Unity
The Statue of Unity- An Iconic Project of L&T

Larsen & Toubro Ltd- Upcoming Projects

L&T Secures Rs 24,000-cr Contracts for Saudi Aramco’s Jafurah Gas Project”

L&T, Indian Oil, and ReNew Join Hands for Green Hydrogen Venture

L&T Commits $12 Billion Investment for Green Energy

India’s leading engineering firm, Larsen & Toubro Ltd. (L&T), plans to invest $12 billion over the next five years, with a third earmarked for expanding its clean energy ventures. This includes a significant $4 billion for establishing 2-3 million tonnes of green hydrogen and ammonia capacity. L&T Energy Green Tech, a subsidiary, will lead the clean energy charge and explore opportunities in fuel cells, grid batteries, and hydrogen vending. CEO SN Subrahmanyan is set to assume the role of group chairman in October, succeeding AM Naik.

L&T Construction Clinches Major Power Transmission Orders in UAE, Dubai and Kuwait

Essentials & Financials: Larsen & Toubro Fundamental Analysis


Larsen & Toubro shareholding pattern
Larsen & Toubro shareholding pattern: June Quarter- 2023

In the second quarter of 2023, Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) displayed a savvy move by boosting their holdings from 24.48% to 25.29%. Concurrently, Mutual Funds demonstrated a strategic shift by slightly reducing their stake from 17.60% to 17.46%. It’s noteworthy that the number of Mutual Fund schemes holding the company’s shares remained unchanged at 55. Meanwhile, promoter holding stands at 0, indicating that the company is likely widely held by public and institutional investors. Looking at the bigger picture, Institutional Investors showed astuteness, increasing their collective holdings from 63.48% to 63.66% in the same quarter.

Analysis Of Company’s Past Year Performances

All Time High: 3009.00 (12 Sep 2023) | All Time Low: 15.57 (20 Oct 1998)

L&T’s growth trajectory is akin to a strategic masterpiece. Over five years, a steady 3% CAGR, followed by 2% for three years. In the latest year, a remarkable surge at 22%—a testament to their dynamic strategies and unwavering commitment.

In terms of share performance: a solid 17% return over five years. Then, an impressive 48% return in the next three years. The most recent year, an exhilarating 51% return. In just the past six months, a notable 36.17% surge. An incredible journey of growth and success.

Trends in the Income Statement- Larsen & Toubro Fundamental Analysis
Trends in the Income Statement of L&T. Source:

Let’s take a closer look at the company’s Return on Equity (ROE) performance: Over the last five years, the ROE has stood strong at a solid 14%. Moving on to the three years prior, it maintained a robust 13%. And in the most recent year, we’re looking at a solid 12%.

Examining the company’s compounded sales growth provides an interesting perspective: Over the past five years, there has been a steady 9% growth in sales. In the last three years, this growth has remained strong at 8%. Looking at the most recent period, the trailing twelve months (TTM), there’s been a significant surge with a 20% increase in sales.

L&T Stock split history

If you bought a Larsen & Toubro share before May 19th, 2004, you’ve made a smart move. The company has split its stock five times, with the latest one on July 13th, 2017. This means that one old share is now worth 4.5 shares! This shows how well Larsen & Toubro has been doing, and how early investors have really benefited.

L&T Stock split history

Date Split Multiple Cumulative multiple
13-07-2017 3:2 x1.5 x4.5
11-07-2013 3:2 x1.5 x3
01-10-2008 2:1 x2 x2
28-09-2006 2:1 x2 x1
19-05-2004 1:2 x0.5 x0.5

When a stock undergoes a split, the overall value of the company remains the same, but the number of outstanding shares increases, and the price per share decreases proportionally. 9For example, in a 2-for-1 stock split, each shareholder receives two shares for every one they previously held, and the share price is halved. If you had one share worth $100 before the split, after the split you’d have two shares, each worth $50.

Important things to analyse closely- Limitations of L&T

Taking a look at the company’s performance over the last three years, we see a steady, if not spectacular, trend. Profit growth has been about 7.48%, showing that the company has been able to maintain and slightly improve its profitability during this period.

In terms of revenue, there’s been an increase of about 8.02%. This shows that the business has been effective in increasing its top-line revenue, even if it has done it more gradually than suddenly.

Earnings & Revenues: Larsen & Toubro Fundamental Analysis

Let’s Wrap it Up!

Summing up Larsen & Toubro Fundamental Analysis, the company has played a big role in some major projects both in India and around the world. Think airports, bridges, and power plants! This shows they can handle really big tasks. They’re not just in one place, but in over 50 countries! So, they’re not just local, they’re competing on a global level. They’re doing really well financially. They’re making good money and their profits are steady. This tells us they’re being managed really smartly


The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.

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