Larsen & Toubro Limited (LT) Fair Value & Analysis
Industrials · IN · Market cap ₹5.2T
Fair value as of: Aug 13, 2026
From 26 valuation models · updated today
Share price +5.8% over the past month.
Below-average quality, and screening another 51% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (₹2,683). The favourable scenario is already priced in.
- Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
- A fairly wide model range (₹1,109 to ₹2,683) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range ₹1,243 – ₹4,375 · fair‑value band ₹1,109 – ₹2,683 · the ₹4,071 price screens above the ₹1,994 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Larsen & Toubro Limited (LT) currently trades at ₹4,071, while our model-based Fair Value estimate is ₹1,994, implying the stock looks roughly 51.0% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Larsen & Toubro Limited generated revenue of ₹2.9T at a net margin of 5.5%. Revenue grew 11.7% year over year. It earns a return on equity of 17.0%. Net debt stands at ₹1.0T. Fundamentals as of Aug 13, 2026
Our scenario range runs from ₹1,109 (bear case) to ₹2,683 (bull case); at ₹4,071, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at -51%, LT screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 26 models by family
Widest divergence: DCF Models (₹2,635) versus Asset-Based (₹532.26). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 43 · Market factors (momentum, volatility) 61
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Larsen & Toubro Limited reported revenue of ₹2.9T in FY2026 versus ₹1.6T in FY2022, a compound +15.8%/yr. Reported net income was ₹161B in FY2026, compounding +16.7%/yr from FY2022.
of which total revenue +11.1 pp · buybacks/dilution +0.2 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
LT screens 51% overvalued. Compare with Samsung C&T Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- India's Larsen and Toubro secures order to build AI factory for Nvidia
- Hitachi Energy and Larsen & Toubro to provide new offshore links for TenneT
Peer Group
Engineering & Construction · 839 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Engineering & Construction median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 35/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Samsung C&T Corporation 028260 | 357,500 KRW | 261,411 KRW | -27% |
| Hyundai Engineering & Construction Co 000720 | 113,700 KRW | 61,453 KRW | -46% |
| Samsung E&A Co 028050 | 49,300 KRW | 43,624 KRW | -12% |
| Rail Vikas Nigam Limited RVNL | ₹230.00 | ₹48.92 | -79% |
| Daewoo Engineering & Construction Co 047040 | 18,400 KRW | 6,507 KRW | -65% |
| KEPCO Engineering & Construction Company 052690 | 99,800 KRW | 19,346 KRW | -81% |
| GS Engineering & Construction Corporation 006360 | 35,200 KRW | 23,135 KRW | -34% |
| DL E&C Co 375500 | 73,500 KRW | 148,433 KRW | +102% |
| KEPCO Plant Service & Engineering Co 051600 | 45,400 KRW | 43,924 KRW | -3% |
| HJ Shipbuilding & Construction Co 097230 | 17,910 KRW | 9,051 KRW | -49% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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