Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Engineering & Construction

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations in India and internationally. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Energy Projects segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning services for the oil and gas industry; coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages; and engineering, procurement, and construction solutions in green energy space. The Hi-Tech Manufacturing segment designs, manufactures/constructs, supplies, and revamps/retrofits engineered critical equipment and systems for the process plants, nuclear energy, and green hydrogen sectors; marine and land platforms, and related equipment and systems, as well as aerospace products and systems, and precision and electronics products and systems for defense, security, space, and industrial sectors; and electrolysers. The IT & Technology Services segment offers information technology and integrated engineering services, e-commerce/digital platforms and data centres, and semiconductor chip design solutions. The Financial Services segment provides retail and wholesale financing services. The Development Projects segment develops, operates, and maintains infrastructure projects; and engages in toll and fare collection, as well as power generation and development activities. The Others segment manufactures and sells industrial valves and rubber processing machinery; manufactures, markets and services construction equipment and parts; and markets and services mining machinery and parts. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.

Revenue projections:

Revenue projections for LT
Revenue projections for LT

LT's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 1.251000
forwardPE 22.905407
debtToEquity 97.640000
earningsGrowth -0.345000
revenueGrowth 0.117000
grossMargins 0.369060
operatingMargins 0.107070
trailingEps 116.790000
forwardEps 183.454500

LT's current ratio, being 1.251, means the company is well-positioned to meet its short-term debt obligations. This reflects LT's strong liquidity, as its cash reserves and current assets provide more than enough coverage for its immediate liabilities.
LT's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
Larsen & Toubro Limited's high debt-to-equity ratio indicates the company is using significant leverage, relying more on debt to finance its operations. This can lead to higher risk, especially if profitability falters or economic conditions worsen.
LT's low growth in earnings and revenue points to a likely reduction in profits. This signals a weakening financial performance, indicating the company might face difficulties in staying profitable.
Larsen & Toubro Limited's negative gross and operating margins indicate that the company is unprofitable, struggling to cover its production and operational costs. This reflects potential weaknesses in cost management or declining sales performance.
LT's forward EPS surpasses its trailing EPS, reflecting expectations of higher profitability in the current year. This suggests that LT is projected to generate stronger earnings, indicating an optimistic financial outlook compared to the prior year's results.

Price projections:

Price projections for LT
Price projections for LT

LT's price projections have consistently been revised higher, indicating growing confidence in the company's future potential. Analysts appear more optimistic about LT's ability to generate strong results going forward.

Recommendation changes over time:

Recommendations trend for LT
Recommendations trend for LT


LT has received a favorable buy bias from analysts recently, positioning it as a solid investment opportunity. This sentiment may attract more investors, who view LT as a stable option to park their money and potentially benefit from the company's continued growth and profitability.