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Larsen & Toubro

BATS-CHIXE:LTODL
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LTODL
BATS-CHIXE
₹1,125B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Larsen & Toubro Limited engages in the technology, engineering, construction, manufacturing, IT, and financial operations worldwide. The last earnings update was 76 days ago. More info.


Add to Portfolio Compare Print
  • Larsen & Toubro has significant price volatility in the past 3 months.
LTODL Share Price and Events
7 Day Returns
-1.1%
BATS-CHIXE:LTODL
3.8%
GB Construction
0.1%
GB Market
1 Year Returns
-46.4%
BATS-CHIXE:LTODL
-34.1%
GB Construction
-23.6%
GB Market
LTODL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Larsen & Toubro (LTODL) -1.1% -31.2% -40.1% -46.4% -38.2% -44.4%
GB Construction 3.8% -20.1% -22.7% -34.1% -57.8% -57.3%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • LTODL underperformed the Construction industry which returned -34.1% over the past year.
  • LTODL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
LTODL
Industry
5yr Volatility vs Market

LTODL Value

 Is Larsen & Toubro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Larsen & Toubro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Larsen & Toubro.

BATS-CHIXE:LTODL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 32 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:LTODL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 7.9%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.863 (1 + (1- 35%) (120.05%))
1.36
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.36
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.36 * 7.85%)
11.2%

Discounted Cash Flow Calculation for BATS-CHIXE:LTODL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Larsen & Toubro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:LTODL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 11.2%)
2020 -14,667.58 Analyst x15 -13,189.93
2021 70,361.16 Analyst x15 56,898.48
2022 65,448.32 Analyst x13 47,593.76
2023 67,260.87 Est @ 2.77% 43,984.32
2024 68,671.74 Est @ 2.1% 40,382.88
2025 69,789.25 Est @ 1.63% 36,905.54
2026 70,695.21 Est @ 1.3% 33,618.39
2027 71,450.01 Est @ 1.07% 30,554.35
2028 72,097.62 Est @ 0.91% 27,725.26
2029 72,669.69 Est @ 0.79% 25,129.96
Present value of next 10 years cash flows ₹329,603.00
BATS-CHIXE:LTODL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹72,669.69 × (1 + 0.53%) ÷ (11.2% – 0.53%)
₹684,488.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹684,488.48 ÷ (1 + 11.2%)10
₹236,703.46
BATS-CHIXE:LTODL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹329,603.00 + ₹236,703.46
₹566,306.46
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹566,306.46 / 1,403.74
₹403.43
BATS-CHIXE:LTODL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:LTODL represents 0.0134x of BSE:500510
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.0134x
Value per Share
(Listing Adjusted, USD)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 403.43 x 0.0134
$5.40
Value per share (USD) From above. $5.40
Current discount Discount to share price of $10.74
= -1 x ($10.74 - $5.40) / $5.40
-98.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Larsen & Toubro is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Larsen & Toubro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Larsen & Toubro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:LTODL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-30) in INR ₹68.53
BSE:500510 Share Price ** BSE (2020-04-07) in INR ₹801.65
United Kingdom of Great Britain and Northern Ireland Construction Industry PE Ratio Median Figure of 17 Publicly-Listed Construction Companies 7.67x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Larsen & Toubro.

BATS-CHIXE:LTODL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500510 Share Price ÷ EPS (both in INR)

= 801.65 ÷ 68.53

11.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Larsen & Toubro is overvalued based on earnings compared to the GB Construction industry average.
  • Larsen & Toubro is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Larsen & Toubro's expected growth come at a high price?
Raw Data
BATS-CHIXE:LTODL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts
13.2%per year
United Kingdom of Great Britain and Northern Ireland Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.83x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:LTODL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.7x ÷ 13.2%

0.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Larsen & Toubro is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Larsen & Toubro's assets?
Raw Data
BATS-CHIXE:LTODL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-30) in INR ₹450.82
BSE:500510 Share Price * BSE (2020-04-07) in INR ₹801.65
United Kingdom of Great Britain and Northern Ireland Construction Industry PB Ratio Median Figure of 19 Publicly-Listed Construction Companies 1.06x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:LTODL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500510 Share Price ÷ Book Value per Share (both in INR)

= 801.65 ÷ 450.82

1.78x

* Primary Listing of Larsen & Toubro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Larsen & Toubro is overvalued based on assets compared to the GB Construction industry average.
X
Value checks
We assess Larsen & Toubro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Larsen & Toubro has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LTODL Future Performance

 How is Larsen & Toubro expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Larsen & Toubro expected to grow at an attractive rate?
  • Larsen & Toubro's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Larsen & Toubro's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Larsen & Toubro's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:LTODL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:LTODL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts 13.2%
BATS-CHIXE:LTODL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 32 Analysts 10.4%
United Kingdom of Great Britain and Northern Ireland Construction Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United Kingdom of Great Britain and Northern Ireland Construction Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:LTODL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:LTODL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,876,288 83,494 128,903 29
2021-03-31 1,673,458 80,398 109,990 32
2020-04-07
2020-03-31 1,529,054 34,642 100,038 33
BATS-CHIXE:LTODL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-30 1,525,987 96,149
2019-09-30 1,507,042 -29,979 93,522
2019-06-30 1,456,154 91,362
2019-03-31 1,428,278 -47,169 89,051
2018-12-31 1,383,870 86,544
2018-09-30 1,310,332 81,027
2018-06-30 1,253,735 76,921
2018-03-31 1,209,525 -100,310 73,699
2017-12-31 1,169,847 72,270
2017-09-30 1,143,907 67,094
2017-06-30 1,135,754 63,242
2017-03-31 1,106,300 66,553 60,412
2016-12-31 1,078,329 62,095

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Larsen & Toubro's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
  • Larsen & Toubro's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:LTODL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below

All data from Larsen & Toubro Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:LTODL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 91.30 105.10 67.40 20.00
2021-03-31 77.00 90.30 51.60 24.00
2020-04-07
2020-03-31 71.06 79.20 55.98 19.00
BATS-CHIXE:LTODL Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-30 68.53
2019-09-30 66.67
2019-06-30 65.15
2019-03-31 63.51
2018-12-31 61.74
2018-09-30 57.82
2018-06-30 54.90
2018-03-31 52.62
2017-12-31 51.63
2017-09-30 47.94
2017-06-30 45.22
2017-03-31 43.20
2016-12-31 44.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Larsen & Toubro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Larsen & Toubro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Larsen & Toubro has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LTODL Past Performance

  How has Larsen & Toubro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Larsen & Toubro's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Larsen & Toubro's year on year earnings growth rate has been positive over the past 5 years.
  • Larsen & Toubro's 1-year earnings growth is less than its 5-year average (11.2% vs 16.3%)
  • Larsen & Toubro's earnings growth has exceeded the GB Construction industry average in the past year (11.2% vs 6.6%).
Earnings and Revenue History
Larsen & Toubro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Larsen & Toubro Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:LTODL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-30 1,525,987.20 96,149.40 298,838.60
2019-09-30 1,507,042.30 93,521.80 275,808.20
2019-06-30 1,456,153.70 91,362.30 250,622.30
2019-03-31 1,428,277.80 89,051.30 248,670.70
2018-12-31 1,383,870.40 86,543.60 253,547.80
2018-09-30 1,310,331.80 81,027.10 250,551.60
2018-06-30 1,253,734.90 76,921.00 237,605.10
2018-03-31 1,209,524.90 73,698.60 224,301.50
2017-12-31 1,169,847.00 72,269.80 235,296.70
2017-09-30 1,143,906.80 67,094.20 229,764.30
2017-06-30 1,135,754.00 63,241.70 211,223.10
2017-03-31 1,106,300.10 60,412.30 203,811.20
2016-12-31 1,078,328.90 62,095.00 167,125.20
2016-09-30 1,074,625.30 59,374.50 165,728.10
2016-06-30 1,055,753.10 52,811.90 163,994.10
2016-03-31 1,019,565.30 42,328.80 201,859.70
2015-12-31 984,842.20 47,065.30 141,287.00
2015-09-30 965,028.20 45,382.70 131,704.30
2015-06-30 942,689.50 44,041.20 128,119.00
2015-03-31 930,591.20 47,648.20 142,265.10
2014-12-31 918,958.10 55,222.00 125,443.50
2014-09-30 897,803.00 54,591.40 124,205.90
2014-06-30 877,517.20 54,103.00 122,500.50
2014-03-31 860,179.10 49,020.00 109,486.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Larsen & Toubro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Larsen & Toubro used its assets less efficiently than the GB Construction industry average last year based on Return on Assets.
  • Larsen & Toubro has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Larsen & Toubro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Larsen & Toubro has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LTODL Health

 How is Larsen & Toubro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Larsen & Toubro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Larsen & Toubro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Larsen & Toubro's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Larsen & Toubro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Larsen & Toubro Company Filings, last reported 3 months ago.

BATS-CHIXE:LTODL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-30 724,005.60 1,350,984.30 199,636.20
2019-09-30 724,005.60 1,330,168.30 199,636.20
2019-06-30 692,009.10 1,255,551.70 213,013.60
2019-03-31 692,009.10 1,255,551.10 213,013.60
2018-12-31 624,237.50 1,235,532.10 284,888.10
2018-09-30 624,237.50 1,235,532.10 284,888.10
2018-06-30 612,819.90 1,075,240.80 171,986.20
2018-03-31 601,049.30 1,075,238.20 171,986.20
2017-12-31 549,765.70 1,028,051.30 224,517.70
2017-09-30 549,765.70 1,028,051.30 224,517.70
2017-06-30 537,801.20 939,762.70 220,753.70
2017-03-31 537,801.20 939,531.00 193,846.80
2016-12-31 494,155.30 907,964.50 177,797.90
2016-09-30 494,155.30 907,964.50 177,797.90
2016-06-30 507,605.10 1,013,066.00 139,997.00
2016-03-31 470,732.00 881,351.50 128,841.00
2015-12-31 482,332.70 982,649.70 149,442.90
2015-09-30 482,332.70 982,649.70 149,442.90
2015-06-30 459,076.90 905,713.80 137,071.50
2015-03-31 459,076.90 905,703.00 137,071.50
2014-12-31 433,034.40 852,563.20 112,001.40
2014-09-30 433,034.40 852,563.20 112,001.40
2014-06-30 408,907.90 801,529.10 104,981.10
2014-03-31 408,907.90 803,295.90 104,832.60
  • Larsen & Toubro's level of debt (183.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (196.9% vs 183.7% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Larsen & Toubro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Larsen & Toubro has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LTODL Dividends

 What is Larsen & Toubro's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.49%
Current annual income from Larsen & Toubro dividends. Estimated to be 3.01% next year.
If you bought $2,000 of Larsen & Toubro shares you are expected to receive $50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Larsen & Toubro's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.59%).
  • Larsen & Toubro's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.08%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:LTODL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Construction Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 5.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:LTODL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 26.06 25.00
2021-03-31 22.31 26.00
2020-04-07
2020-03-31 19.81 25.00
BATS-CHIXE:LTODL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-01-22 20.000 1.845
2019-05-10 18.000 1.288
2018-05-28 16.000 1.205
2017-05-29 14.000 1.131
2016-05-25 12.167 1.221
2015-06-01 10.833 1.172
2014-08-25 9.500 0.885
2013-05-22 8.222 1.154
2012-05-14 7.333 1.128
2011-05-19 6.444 1.044
2010-08-27 5.556 0.701
2009-08-28 4.667 0.639

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Larsen & Toubro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Larsen & Toubro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Larsen & Toubro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Larsen & Toubro has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LTODL Management

 What is the CEO of Larsen & Toubro's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
SNS Subrahmanyan
COMPENSATION ₹484,540,000
AGE 59
TENURE AS CEO 2.8 years
CEO Bio

Mr. Sekharipuram Narayanan Subrahmanyan, also known as SNS, has been Chief Executive Officer and Managing Director of Larsen & Toubro Limited since July 1, 2017. Mr. Subrahmanyan serves as Chief Executive officer at L&T Shipbuilding Ltd., since July 01, 2017. He serves as Managing Director and Director of L&T Shipbuilding Ltd. Mr. Subrahmanyan served as the President of Larsen & Toubro Limited since October 01, 2015 until July 1, 2017. He served as Deputy Managing Director of Larsen & Toubro Limited from October 01, 2015 to July 1, 2017. He served as Senior Executive Vice President of Construction & Infrastructure at Larsen & Toubro Limited until October 2015. Mr. Subrahmanyan serves as a Non-Executive Director at Mindtree Limited since July 16, 2019 and serves as its Non-Executive Vice Chairman since August 2, 2019. He has experience in the infrastructure and construction industry. He joined the L&T group in 1984. He served as Senior Executive Vice President of Construction at Larsen & Toubro Limited. Mr. Subrahmanyan served as a Vice President and Head of B&F OC at Larsen & Toubro Limited - ECC Division. He started off as project planning engineer involving costing and job planning and was soon handpicked and was instrumental in developing the MIS, Budgets and Strategic Planning for ECC Division of L&T. His Key Achievements: Securing and managing EPC contracts for four major international airports in India at Bengaluru, Hyderabad, Delhi and Mumbai. He has secured a major order for construction of Salalah Airport at Oman which is once again one of the largest international orders for L&T. He was instrumental in setting up the Ready Mix Concrete business for ECC. He has bagged many prestigious orders for construction of landmark buildings like ICICI and National Stock Exchange buildings at Bandra-Kurla, Safal Fruit & Vegetable Market - Bengaluru, TIDEL Park-Chennai including many IT and hospital building projects. On the developmental projects side, he lead a team which conceptualised and implemented projects like HITEC City & HITEX Exhibition Centre at Hyderabad, CR2 - India's first Commercial Complex and Car Park at Mumbai and Bangalore International Airport Limited- India's first Public Private Partnership Airport. He serves as Chairman of L&T Metro Rail (Hyderabad) Limited. He has been Vice Chairman of L&T Technology Services Limited since May 3, 2017 and has been its Non Executive Director since January 10, 2015. He has been Non-Executive Vice Chairman of Larsen & Toubro Infotech Limited since May 4, 2017. He has been Non-Executive Director at Larsen & Toubro Infotech Limited since January 10, 2015. He serves as Director of Larsen & Toubro (Oman) L.L.C. He has been a Whole-time Director at Larsen & Toubro Limited since July 01, 2011. He also serves as Director of L&T Buildings & Factories Independent Company and L&T Infrastructure Independent Company. He served as Director of Kempegowda International Airport Limited. He is a Member of the Board of Governors of the National Institute of Construction Management and Research and Governing Council of the Construction Skill Development Council of India. Mr. Subrahmanyan was awarded the “Leadership Award” by the Qatar Contractors Forum in 2014. He was ranked 36th in the “2014 Construction Week Power 100” in the global construction sector in a survey by international publication the Construction Week, in its issue dated June 22, 2014. In 2012, he was awarded with the “Outstanding Contribution to Industry (Infrastructure)” by the Construction Week Magazine. He has obtained a graduate degree in civil engineering from the Kurukshetra University, Haryana and has completed a post-graduate course in business administration from Symbiosis Institute of Business Management, Pune. He also undergone the Executive Management Programme from London Business School. Mr. Subrahmanyan is a Fellow of the Institution of Civil Engineers- United Kingdom.

CEO Compensation
  • SNS's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • SNS's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Larsen & Toubro management team in years:

4.3
Average Tenure
62
Average Age
  • The tenure for the Larsen & Toubro management team is about average.
Management Team

SNS Subrahmanyan

TITLE
CEO, MD & Whole Time Director
COMPENSATION
₹485M
AGE
59
TENURE
2.8 yrs

Ramamurthi Raman

TITLE
CFO & Whole-Time Director
COMPENSATION
₹251M
AGE
61
TENURE
8.6 yrs

Shailendra Roy

TITLE
Senior EVP of Power & Whole Time Director
COMPENSATION
₹141M
AGE
67
TENURE
4.5 yrs

Dip Sen

TITLE
Senior EVP of Infrastructure & Whole-Time Director
COMPENSATION
₹70M
AGE
63
TENURE
4.5 yrs

M. Satish

TITLE
Senior EVP of Buildings
COMPENSATION
₹94M
AGE
62
TENURE
4.2 yrs

Jayant Patil

TITLE
Senior EVP of Defence & Smart Technologies and Whole-Time Director
COMPENSATION
₹82M
AGE
65
TENURE
2.8 yrs

Marnix Coomans

TITLE
Technical Head
AGE
42

Bahadur Hitendra

TITLE
Head of Administration
AGE
63

Arnob Mondal

TITLE
Vice President of Corporate Account & Investor Relations

Kumar Hemant

TITLE
Group General Counsel
AGE
62
Board of Directors Tenure

Average tenure and age of the Larsen & Toubro board of directors in years:

7.5
Average Tenure
64
Average Age
  • The tenure for the Larsen & Toubro board of directors is about average.
Board of Directors

Anilkumar Naik

TITLE
Group Chairman
COMPENSATION
₹82M
AGE
77
TENURE
7.5 yrs

SNS Subrahmanyan

TITLE
CEO, MD & Whole Time Director
COMPENSATION
₹485M
AGE
59
TENURE
8.8 yrs

Ramamurthi Raman

TITLE
CFO & Whole-Time Director
COMPENSATION
₹251M
AGE
61
TENURE
8.5 yrs

Shailendra Roy

TITLE
Senior EVP of Power & Whole Time Director
COMPENSATION
₹141M
AGE
67
TENURE
8.1 yrs

Dip Sen

TITLE
Senior EVP of Infrastructure & Whole-Time Director
COMPENSATION
₹70M
AGE
63
TENURE
4.5 yrs

M. Satish

TITLE
Senior EVP of Buildings
COMPENSATION
₹94M
AGE
62
TENURE
4.3 yrs

Jayant Patil

TITLE
Senior EVP of Defence & Smart Technologies and Whole-Time Director
COMPENSATION
₹82M
AGE
65
TENURE
2.8 yrs

Subodh Bhargava

TITLE
Independent Director
COMPENSATION
₹7M
AGE
77
TENURE
12.8 yrs

Mukund Chitale

TITLE
Independent Director
COMPENSATION
₹5M
AGE
70

Sunita Sharma

TITLE
Non-Executive Director
COMPENSATION
₹330K
AGE
60
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Larsen & Toubro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Larsen & Toubro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LTODL News

Simply Wall St News

LTODL Company Info

Description

Larsen & Toubro Limited engages in the technology, engineering, construction, manufacturing, IT, and financial operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, smart world, and communication projects, as well as metallurgical and material handling systems. The Power segment offers turnkey solutions for coal-based and gas-based thermal power plants, including power generation equipment with related systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertiliser, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, prototypes, produces, delivers, commissions, and supports equipment, systems, and platforms for the defence and aerospace sectors. It also designs, constructs, commissions, repairs/refits, and upgrades of naval and coast guard vessels. The Electrical & Automation segment manufactures and sells low and medium voltage switchgear components, custom built low and medium voltage switchboards, electronic energy meters/protection (relays) systems, and control and automation products. The Realty segment develops and lease properties. The Others segment offers hydrocarbon; markets and services construction and mining machinery and parts; and manufactures and sells rubber processing machinery. The company was founded in 1938 and is headquartered in Mumbai, India.

Details
Name: Larsen & Toubro Limited
LTODL
Exchange: BATS-CHIXE
Founded: 1938
₹14,806,601,801
1,403,743,056
Website: http://www.larsentoubro.com
Address: Larsen & Toubro Limited
L&T House,
N.M. Marg,
Mumbai,
Maharashtra, 400001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500510 Equity Shares Mumbai Stock Exchange IN INR 02. Feb 1998
NSEI LT Equity Shares National Stock Exchange of India IN INR 02. Feb 1998
OTCPK LTOR.Y GDR 144A Pink Sheets LLC US USD 19. Jan 1995
LSE LTOD SPON GDR EA REPR 1 ORD REG S London Stock Exchange GB USD 07. Dec 1994
OTCPK LTOU.F SPON GDR EA REPR 1 ORD REG S Pink Sheets LLC US USD 07. Dec 1994
DB LTO SPON GDR EA REPR 1 ORD REG S Deutsche Boerse AG DE EUR 07. Dec 1994
BDL LS&TB SPON GDR EA REPR 1 ORD REG S Bourse de Luxembourg LU USD 07. Dec 1994
BATS-CHIXE LTODL SPON GDR EA REPR 1 ORD REG S BATS 'Chi-X Europe' GB USD 07. Dec 1994
Number of employees
Current staff
Staff numbers
0
Larsen & Toubro employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:28
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/01/22
Last earnings reported: 2019/12/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.