LT
Larsen & Toubro Limited
Each stock's 10,000-path forecast, rendered as light.
Larsen & Toubro Limited (LT) Stock Analysis & Case Study
Is LT a good buy? The data-driven verdict.
Larsen & Toubro Limited (LT) trades at ₹4,056,on the numbers it worth a closer look, a Downstox Snapshot Score of 58/100.
On the numbers, Larsen & Toubro Limited (LT) worth a closer look, a Downstox Snapshot Score of 58/100, weighing premium at 31.7× earnings, ROE of 15.9%, a 64% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027-2031.
Last updated . Data snapshot for research, not investment advice.
The Downstox take on LT
The puzzle here is paying 35 times earnings for a heavy engineering house earning roughly 16 percent on equity and under 15 percent on capital. Those returns are respectable for an infrastructure builder, but they are not the kind of high-margin compounding that usually justifies a multiple this rich, so the price is leaning hard on the order book and future execution. A middling Piotroski score of 4 suggests the recent financial trend is not pristine, which matters when expectations are stretched. Watch whether returns on capital climb toward the valuation or the valuation drifts toward the returns.
Downstox editorial view, written by our own analysts on 23 Jun 2026. The figures quoted were accurate then; see the live ratios above for today's numbers. Information, not investment advice.
LT fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
How LT ranks against the 2,373 companies in our screener
- LT's market cap of 5.58L Cr ranks in the top 1% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
- LT's book value of ₹794 ranks in the top 5% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
- LT's 3-year profit (PAT) growth of 17.0% ranks in the 52nd percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
- LT's 3-year revenue growth of 16.0% ranks in the 65th percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
- LT's debt-to-equity ratio of 1.15x is lower than 11% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
We do not hold a promoter holding figure for LT, as of 9 Aug 2026, so it is not ranked here.
Is LT overvalued? LT P/E vs its Infrastructure
LT's P/E of 31.7× sits above the Infrastructure peer median of 29.4×, so on earnings it screens in line with peers, while its 0.94% dividend yield is above the peer median of 0.73%.
LT share price target 2027, 2028, 2029, 2030, 2031, a probability view
Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 9.8y of LT history (14%/yr drift, 25%/yr volatility).
| Year | Low (P10) | Median target (P50) | High (P90) | Upside vs today |
|---|---|---|---|---|
| LT 2027 | ₹3,219 | ₹4,429 | ₹6,092 | +9% |
| LT 2028 | ₹3,070 | ₹4,836 | ₹7,617 | +19% |
| LT 2029 | ₹3,005 | ₹5,280 | ₹9,279 | +30% |
| LT 2030 | ₹3,035 | ₹5,766 | ₹10,953 | +42% |
| LT 2031 | ₹3,078 | ₹6,296 | ₹12,878 | +55% |
Median (P50) is the central estimate; the P10-P90 band is the 80% confidence range. Probabilities, not promises.
What is the probability LT goes up, or doubles?
The bull case for LT
- LT's return on equity of 15.9% ranks in the 74th percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
- A 10,000-path probability model puts a 64% chance the price is higher in a year, with a median target of ₹4,429 (+9%).
- Relatively low volatility (25%/yr), a steadier ride than the typical mid/small-cap.
- Upside scenario: the model's optimistic (P90) 3-year path reaches ₹9,279.
The bear case & risks
- LT's P/E of 31.7x is lower than 44% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
- Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹3,005.
LT volatility & expected range, how bumpy is the ride?
Over the last 9.8 years LT compounded at 14%/year with annualized volatility of 25%. That volatility implies a 1-year 80% range of ₹3,219-₹6,092, the honest backbone behind any single price target.
LT price forecast, the full 60-month probability fan
LT price probability fan
Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.
Probability of key outcomes
What are the odds LT hits common targets within the simulated horizon?
Full multi-horizon detail on the LT price target & forecast page.
LT Piotroski F-Score: 5/8, how financially strong is it?
The Piotroski F-Score grades financial strength on profitability, leverage and efficiency checks. Downstox scores the eight checks it can verify from published filings, so 8 is full marks. LT scores 5/8, mixed financial health.
LT MTF margin & leverage across 11 brokers
Margin Trading Facility lets you buy LT with part of the capital. Lower margin % = higher leverage. Rates compared across 11 brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 24.32% | 4.1× |
| Zerodha | 23.70% | 4.2× |
| Groww | 23.72% | 4.2× |
| Dhan | 22.50% | 4.4× |
| Kotak NeoCHEAPEST | 20.79% | 4.8× |
| Paytm Money | 20.82% | 4.8× |
| Pocketful | 28.04% | 3.6× |
| Fyers | 27.78% | 3.6× |
| Anand Rathi | 27.79% | 3.6× |
| Bajaj Broking | 23.00% | 4.3× |
| Share India | 27.86% | 3.6× |
Compare every broker on the LT MTF page.
LT vs peers,Infrastructure comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| LT (this stock) | 31.7× | 0.94% | ₹5.58L Cr |
| ADANIPORTS | 29.4× | 0.44% | ₹3.90L Cr |
| RVNL | 55.6× | 0.73% | ₹48,660 Cr |
| IRB | 24.2× | 0.79% | ₹23,770 Cr |
| GMRAIRPORT | 544.0× | 0.00% | ₹1.13L Cr |
| RELIANCE | 24.2× | 0.45% | ₹18.06L Cr |
| TCS | 16.5× | 2.61% | ₹8.87L Cr |
Fundamentals from Screener.in, as of 9 Aug 2026
About Larsen & Toubro Limited: sector, index & market-cap context
Larsen & Toubro Limited (LT) is a large-cap NSE-listed company in the Infrastructure sector, and a constituent of the Nifty 50 index, with a market capitalisation of ₹5.58L Cr. See more stocks on our screener.
How the LT Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of Larsen & Toubro Limited's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.
This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.
LT analysis, FAQs
Is Larsen & Toubro Limited (LT) a good buy?
On the numbers, Larsen & Toubro Limited (LT) worth a closer look, a Downstox Snapshot Score of 58/100, weighing premium at 31.7× earnings, ROE of 15.9%, a 64% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.
Is LT overvalued or undervalued?
LT trades at 31.7× earnings versus a peer median of 29.4×, so it screens richer than its Infrastructure peers.
What is the LT share price target for 2031?
LT's probability-weighted 2031 median target is ₹6,296, with an 80% range of ₹3,078-₹12,878 (10,000-path Monte-Carlo).
What is the probability LT doubles in 5 years?
The modelled probability of LT reaching ₹8,112 (2×) within 5 years is 32%.
What is the bull case for LT?
LT's return on equity of 15.9% ranks in the 74th percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026. A 10,000-path probability model puts a 64% chance the price is higher in a year, with a median target of ₹4,429 (+9%). Relatively low volatility (25%/yr), a steadier ride than the typical mid/small-cap.
What are the risks in LT?
LT's P/E of 31.7x is lower than 44% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.