Fact based stock research
Larsen & Toubro (BSE:500510)
INE018A01030
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Larsen & Toubro stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 47 (worse than 53% compared with investment alternatives), Larsen & Toubro (Construction & Engineering, India) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Larsen & Toubro are low in value (priced high) with a consolidated Value Rank of 46 (worse than 54% of alternatives), and are riskily financed (Safety Rank of 29, which means above-average debt burdens) but show above-average growth (Growth Rank of 84). ...read more
RECOMMENDATION: A Combined Rank of 47, is a hold recommendation based on Larsen & Toubro's financial characteristics. As the company Larsen & Toubro shows low value with an Obermatt Value Rank of 46 (54% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 84% of comparable companies (Obermatt Growth Rank is 84). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 29 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Larsen & Toubro, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | India |
| Industry | Construction & Engineering |
| Index | Independent Boards Growth Markets, Water Tech, CNX Nifty 50 |
| Size class | XX-Large |
31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Larsen & Toubro
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 35 |
|
35 |
|
44 |
|
46 |
|
| GROWTH | ||||||||
| GROWTH | 63 |
|
81 |
|
68 |
|
84 |
|
| SAFETY | ||||||||
| SAFETY | 30 |
|
18 |
|
18 |
|
29 |
|
| SENTIMENT | ||||||||
| SENTIMENT | 53 |
|
78 |
|
57 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | 25 |
|
61 |
|
44 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 47 (worse than 53% compared with investment alternatives), Larsen & Toubro (Construction & Engineering, India) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Larsen & Toubro are low in value (priced high) with a consolidated Value Rank of 46 (worse than 54% of alternatives), and are riskily financed (Safety Rank of 29, which means above-average debt burdens) but show above-average growth (Growth Rank of 84). ...read more
RECOMMENDATION: A Combined Rank of 47, is a hold recommendation based on Larsen & Toubro's financial characteristics. As the company Larsen & Toubro shows low value with an Obermatt Value Rank of 46 (54% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 84% of comparable companies (Obermatt Growth Rank is 84). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 29 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Larsen & Toubro, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 35 |
|
35 |
|
44 |
|
46 |
|
| GROWTH | ||||||||
| GROWTH | 63 |
|
81 |
|
68 |
|
84 |
|
| SAFETY | ||||||||
| SAFETY | 30 |
|
18 |
|
18 |
|
29 |
|
| COMBINED | ||||||||
| COMBINED | 30 |
|
36 |
|
30 |
|
47 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 46 (worse than 54% compared with alternatives), Larsen & Toubro shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Larsen & Toubro. Price-to-Sales (P/S) is 58, which means that the stock price compared with what market professionals expect for future sales is lower than for 58% of comparable companies, indicating a good value concerning Larsen & Toubro's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 54, which means that dividends are expected to be higher than for 54% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 56% of alternatives (only 44% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 51% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 46, is a hold recommendation based on Larsen & Toubro's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 47 |
|
41 |
|
52 |
|
58 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 38 |
|
36 |
|
50 |
|
49 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 34 |
|
34 |
|
43 |
|
44 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 56 |
|
46 |
|
50 |
|
54 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 35 |
|
35 |
|
44 |
|
46 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 84 (better than 84% compared with alternatives) for 2025, Larsen & Toubro shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Larsen & Toubro. Sales Growth has a value of 66, which means that, currently, professionals expect the company to grow more than 66% of its competitors. The same is valid for Profit Growth with a value of 82 and for Capital Growth with 58. In addition, Stock Returns had an above-average rank value of 56, which means they have been higher than 56% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 84, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Larsen & Toubro exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 62 |
|
46 |
|
70 |
|
66 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 60 |
|
61 |
|
70 |
|
82 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 27 |
|
64 |
|
34 |
|
58 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 71 |
|
91 |
|
50 |
|
56 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 63 |
|
81 |
|
68 |
|
84 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Larsen & Toubro has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Larsen & Toubro is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Larsen & Toubro. Liquidity is at 60, meaning the company generates more profit to service its debt than 60% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 46, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 54% of its competitors. Leverage is also high at a rank of 17, which means that the company has an above-average debt-to-equity ratio. It has more debt than 83% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), Larsen & Toubro has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 18 |
|
18 |
|
17 |
|
17 |
|
| REFINANCING | ||||||||
| REFINANCING | 62 |
|
46 |
|
46 |
|
46 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 39 |
|
46 |
|
49 |
|
60 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 30 |
|
18 |
|
18 |
|
29 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
93 |
|
82 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | 40 |
|
50 |
|
18 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | 5 |
|
56 |
|
43 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | 71 |
|
67 |
|
67 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | 53 |
|
78 |
|
57 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Larsen & Toubro from July 31, 2025.
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