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Fundamentals scanner

Every ratio from the Fundamental Analysis track, computed on a real company and annotated with what the number actually means. Then the three financial statements, so you can do the cash-flow check yourself.

Larsen & Toubro

IndustrialsNeutral
Market cap
₹5,58,189 Cr
P/E
33.7x
ROE
Debt / equity
0.98

What the company does

Larsen & Toubro Limited engages in engineering, procurement, and construction projects (EPC) in India and internationally. The company operates through four segments: Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, and Others. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission & distribution, renewables, water and effluent treatment, and minerals and metals. The Energy Projects segment provides EPC solutions in clean energy space, oil & gas, refineries, petrochemicals & offshore wind energy sectors, from front-end design through detailed engineering, modular fabrication, procurement, project management, construction, installation and commissioning; CarbonLite solutions for power generation plants including power generation equipment with associated systems; and carbon capture utilization and utility packages. The Hi-Tech Manufacturing segment designs, manufactures/constructs, supplies, and revamps/retrofits custom designed engineered critical equipment and systems for the process plants, nuclear energy, and green hydrogen sectors; marine and land platforms, related equipment and systems, and aerospace products and systems; precision and electronics products and systems; and electrolysers. The other segment engages in realty; smart infrastructure and communication projects; construction equipment; and industrial product design development, including marketing and servicing of construction equipment, mining machinery and parts thereof, manufacture and sale of rubber processing machinery, and ecommerce/digital platforms and data centers. It has a strategic partnership with General Atomics Aeronautical Systems, Inc. to manufacture Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft Systems (RPAS) in India, for the Indian armed forces. The company was founded in 1938 and is headquartered in Mumbai, India.

Industry: Engineering & ConstructionEmployees: 55,662Beta: 0.51

Valuation — what you are paying

How the price compares to earnings, assets and cash generation.

  • P/E (trailing)33.7xFair

    You are paying 33.7 years of current profit for each share. The earnings yield is 3.0%.

  • P/B (price to book)5.1xFair

    The market values the company at 5.1× its accounting net worth. High is normal for asset-light businesses and unusual for banks.

  • EV / EBITDA18.0xFair

    This is the only common multiple that accounts for debt — it is what an actual acquirer would look at, because they would inherit the borrowings.

  • Dividend yield0.94%Fair

    Pays 0.94% of the current price out each year. Remember that yield rises when price falls — check the dividend is covered by cash flow.

Profitability — is this a good business?

Returns on capital and margins, the numerical shadow of a moat.

  • Return on equityNo data

    Not available.

  • Return on assetsNo data

    Not available.

  • Operating margin10.6%Fair

    Keeps ₹10.6 of operating profit from every ₹100 of sales. Compare only against companies in the same industry.

  • Net margin5.6%Fair

    Sustained high net margins are evidence that something is stopping competitors from competing the profits away.

Financial strength — can it survive a bad year?

Leverage and liquidity. This is where fragility shows up first.

  • Debt to equity0.98Fair

    A conservative balance sheet that can absorb a downturn without a crisis.

  • Current ratioNo data

    Not available.

  • Total debt₹1,25,497 CrNo data

    Against cash of ₹76614.65 Cr. Net debt is what matters, not gross borrowings.

  • Free cash flowNo data

    Not available.

Growth — is it getting bigger?

Revenue and earnings momentum, and how the two compare.

  • Revenue growth (yoy)+8.1%Fair

    Ask where the growth came from: more volume, higher prices, or an acquisition. They are very different in quality.

  • Earnings growth (yoy)+14.0%Fair

    Profits are growing faster than sales — margins are expanding, which is the sign of genuine operating leverage.

  • Revenue (TTM)₹2,96,901 CrNo data

    EBITDA of ₹34754.51 Cr and operating cash flow of —.

  • PEG ratio1.06Fair

    P/E divided by expected growth. Only as reliable as that growth forecast, which is usually optimistic.

Financial statements

Reported figures, most recent year first. All values in rupees.

FY2026FY2025FY2024FY2023
Revenue₹2,85,874 Cr₹2,55,734 Cr₹2,21,113 Cr₹1,83,341 Cr
Cost of revenue₹0.00₹0.00₹0.00₹0.00
Gross profit₹0.00₹0.00₹0.00₹0.00
Operating expenses₹0.00₹0.00₹0.00₹0.00
Operating income
Interest expense
Pre-tax income
Tax₹0.00₹0.00₹0.00₹0.00
Net profit₹16083.99 Cr₹15037.11 Cr₹13059.11 Cr₹10470.72 Cr
Sourced from the provider’s filing data. Always verify against the company’s own annual report before acting on anything.
How to read this page. The grades are simple heuristics applied to standard thresholds — they take no account of industry norms, business cycle position, or accounting policy. A bank will always look over-leveraged by these rules, and a cyclical will look cheap at the top of its cycle. Use them as prompts to investigate, never as conclusions.