LT
Larsen & Toubro
Larsen & Toubro (LT) Stock Analysis & Case Study
Is LT a good buy? The data-driven verdict.
Larsen & Toubro (LT) trades at ₹4,201,on the numbers it mixed signals, a Downstox Snapshot Score of 47/100.
On the numbers, Larsen & Toubro (LT) mixed signals, a Downstox Snapshot Score of 47/100, weighing premium at 35.2× earnings, ROE of 15.9%. 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. Information, not investment advice.
LT fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
Is LT overvalued? LT P/E vs its Infrastructure
LT's P/E of 35.2× sits above the Infrastructure peer median of 32.5×, so on earnings it screens in line with peers, while its 0.90% dividend yield is above the peer median of 0.70%.
The bull case for LT
- A healthy 15.9% return on equity.
The bear case & risks
- At 35.2× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.
LT Piotroski F-Score: 4/9, how financially strong is it?
The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. LT scores 4/9,mixed financial health.
LT MTF margin & leverage, Upstox, Zerodha, Groww, Dhan
Margin Trading Facility lets you buy LT with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 28.3% | 3.5× |
| Zerodha | 24.2% | 4.1× |
| DhanCHEAPEST | 22.5% | 4.4× |
Compare every broker on the LT MTF page.
LT vs peers,Infrastructure comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| LT (this stock) | 35.2× | 0.90% | ₹5.78L Cr |
| ADANIPORTS | 32.5× | 0.41% | ₹4.21L Cr |
| RVNL | 58.7× | 0.70% | ₹51,308 Cr |
| IRB | 29.8× | 0.71% | ₹26,197 Cr |
| GMRAIRPORT | 549.0× | 0.00% | ₹1.14L Cr |
| RELIANCE | 23.1× | 0.45% | ₹17.95L Cr |
| TCS | 14.7× | 3.01% | ₹7.69L Cr |
About Larsen & Toubro: sector, index & market-cap context
Larsen & Toubro (LT) is a large-cap NSE-listed company in the Infrastructure sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹5.78L Cr. See more Nifty 50 stocks.
How the LT Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of Larsen & Toubro'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 (LT) a good buy?
On the numbers, Larsen & Toubro (LT) mixed signals, a Downstox Snapshot Score of 47/100, weighing premium at 35.2× earnings, ROE of 15.9%. This is a data snapshot for research, not investment advice.
Is LT overvalued or undervalued?
LT trades at 35.2× earnings versus a peer median of 32.5×, so it screens richer than its Infrastructure peers.
What is the bull case for LT?
A healthy 15.9% return on equity.
What are the risks in LT?
At 35.2× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.