Larsen & Toubro Stock Price Analysis and Quick Research Report. Is Larsen & Toubro an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Larsen & Toubro.
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PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Larsen & Toubro has a PE ratio of 43.1678273190437 which is high and comparatively overvalued.
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Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Larsen & Toubro has ROA of 6.0554% which is a bad sign for future performance. (Higher values are always desirable.)
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Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Larsen & Toubro has a Current ratio of 1.2719.
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Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Larsen & Toubro has a ROE of 15.9684%. (Higher is better)
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Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Larsen & Toubro has a Debt to Equity ratio of 0.3057 which means that the company has low proportion of debt in its capital.
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Sales growth: Larsen & Toubro has reported revenue growth of 12.8933% which is poor in relation to its growth and performance.
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Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Larsen & Toubro for the current financial year is 6.80285407919122%.
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Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Larsen & Toubro is Rs 34 and the yield is 0.9498%.
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Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Larsen & Toubro is Rs 82.9275. The higher the EPS, the better it is for investors.
One can find all the Financial Ratios of Larsen & Toubro in Ticker for free. Also, one can get the intrinsic value of Larsen & Toubro by using Valuation Calculators, which are available with a Finology ONE subscription.
Larsen & Toubro FAQs
Q1. What is Larsen & Toubro share price today?
Ans: The current share price of Larsen & Toubro is Rs 3579.8.
Q2. What is the market capitalisation of Larsen & Toubro?
Ans: Larsen & Toubro has a market capitalisation of Rs 492405.72096562 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of Larsen & Toubro?
Ans: The PE ratio of Larsen & Toubro is 43.1678273190437 and the P/B ratio of Larsen & Toubro is 6.54376257756757, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of Larsen & Toubro share?
Ans: The 52-week high share price of Larsen & Toubro is Rs 3963.5, and the 52-week low share price of Larsen & Toubro is Rs 2965.3.
Q5. Does Larsen & Toubro pay dividends?
Ans: Currently, Larsen & Toubro pays dividends. Dividend yield of Larsen & Toubro is around 0.9498%.
Q6. What are the face value and book value of Larsen & Toubro shares?
Ans: The face value of Larsen & Toubro shares is Rs 2, while the book value per share of Larsen & Toubro is around Rs 547.0553. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What is the debt of Larsen & Toubro?
Ans: Larsen & Toubro has a total debt of Rs 21934.88 Cr., which affects investor sentiment and financial stability.
Q8. What are the ROE and ROCE of Larsen & Toubro?
Ans: The ROE of Larsen & Toubro is 15.9684% and ROCE of Larsen & Toubro is 17.9054%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q9. Is Larsen & Toubro a good buy for the long term?
Ans: The Larsen & Toubro long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q10. Is Larsen & Toubro undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Larsen & Toubro appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q11. How to check Larsen & Toubro’s financials?
Ans: You can review Larsen & Toubro’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.