infrastructure · LT
Larsen & Toubro
Larsen & Toubro: PE below historical average. NARROW LEADERSHIP regime.
Price
₹3,937.7
Price 2026-07-30
5 day
+4.02%
Short-term move
1 month
-4.96%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹549.2k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Larsen & Toubro (LT) in the infrastructure sector?”
Price chart
₹3,832
+4.42% over period
About Larsen & Toubro
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 sect...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -7.7% over 14 days) — not a reliable pattern.
52-week position
Trading at 88.7% of 52-week high
Technicals
RSI 14
49.1
Trend
downtrend
50 DMA
Below
200 DMA
Below
Key metrics
P/E ratio
34.2
29th pct · 7 quarterly points (limited history)
P/B
5.0
ROE
16.9%
Moderate profitability — 16.9% ROE
Market cap
₹549.2k Cr
Revenue growth
1170.0% YoY
Promoter
18.1%
52-week range
₹3,288.1 – ₹4,440
88.7% of high
RSI (14)
49.1
downtrend
vs 50 DMA
Below
DMA ₹3,981.79
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Larsen & Toubro scores 80/100 on fundamentals (strong). Larsen & Toubro: PE below historical average. NARROW LEADERSHIP regime.
Fundamental Score: 80/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 14.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 14.91% is moderate leverage-driven and stable. Net margin 5.7%, asset turnover 0.63x, leverage 4.1x.
What This Means
Net margin of 5.7% means the company keeps ₹5.7 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.63x means the company efficiently uses its assets to generate revenue. Leverage of 4.1x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
33.1%
Operating
10.8%
Net
5.7%
Gross margin 33.1% → operating margin 10.8% → net margin 5.7%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.0x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 11.8x — very comfortable. Debt service is not a concern. Debt/EBITDA at 3.6x is moderate.
Free Cash Flow
STRONGFCF margin at 4.2% — moderate. Generating cash after investments.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| ADANIPORTS Adani Ports | ₹1,664.1 | -6.4% | 31.5 | 15.6% | 2650% | ₹4.2L Cr |
| GMRAIRPORT GMR Airports | ₹103.91 | -3.2% | 958.2 | N/A | 3750% | ₹1.2L Cr |
| DELHIVERY Delhivery | ₹468.3 | +0.6% | 262.9 | 1.6% | 3000% | ₹38.8k Cr |
| CONCOR Container Corp of India | ₹525.15 | +9.3% | 28.9 | 9.8% | -110% | ₹36.0k Cr |
| GESHIP Great Eastern Shipping | ₹1,371.3 | -4.9% | 6.7 | 18.9% | 2360% | ₹19.8k Cr |
| KEC KEC International | ₹468.75 | -0.9% | 21.9 | 10.5% | -700% | ₹13.3k Cr |
| IRCON Ircon International | ₹125.63 | +0.1% | 21.1 | 9.1% | -650% | ₹12.5k Cr |
| AFCONS Afcons Infrastructure | ₹273.25 | -3.7% | 45.5 | 4.7% | -1890% | ₹11.4k Cr |
| LT Larsen & Toubro | ₹3,937.7 | +3.8% | 34.2 | 16.9% | 1170% | ₹5.5L Cr |
Tensions to watch
PE in bottom 29% historically — undervaluation or fundamental deterioration?
Low PE can signal value OR declining growth expectations. Check recent earnings and sector outlook.
Key Watchpoints
Breaks above ₹4135 (+5%)
Trend reversal confirmation
Breaks below ₹3741 (-5%)
Further downside risk
PE reverts to median of 34.9 (7 quarterly points (limited history))
Valuation normalization
Infrastructure sector entering leadership
Sector rotation signal
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
One-off gains contributing to profit. Check sustainability of earnings without these items.
Special charges of ₹5191K Cr. May indicate restructuring, impairment, or one-time costs.
Working capital is consuming significant cash. Operational efficiency declining.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Potential accounting concerns. Cross-check with earnings quality flags.
No single controlling shareholder. Management may not be aligned with shareholders.
Collection cycle changing. Collection improving — positive for cash flow.
⚠️ 1 critical + 6 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
