infrastructure
Larsen & Toubro
LT · Nifty 50
₹4,207.7
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Larsen & Toubro scores 85/100 on fundamentals (strong). Larsen & Toubro: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 16.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 16.15% is moderate leverage-driven and stable. Net margin of 6.0% × asset turnover of 0.65x × leverage of 4.1x.
What This Means
Net margin of 6.0% means the company keeps ₹6.0 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.65x 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
32.2%
Operating
11.0%
Net
6.0%
Gross margin 32.2% → operating margin 11.0% → net margin 6.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.9x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 11.4x — very comfortable. Debt service is not a concern. Debt/EBITDA at 3.4x is moderate.
Free Cash Flow
STRONGFCF margin at 4.1% — moderate. Generating cash after investments.
Peer Comparison
Larsen & Toubro is compared against 10 peers in the infrastructure sector.
Key Watchpoints
Breaks above ₹4418 (+5%)
Trend reversal confirmation
Breaks below ₹3997 (-5%)
Further downside risk
PE reverts to 5Y median of 34.6
Valuation normalization
Infrastructure sector entering leadership
Sector rotation signal
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Elevated risk score. Review audit, board, and shareholder rights metrics.
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.
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.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes