Financials Larsen & Toubro Limited London S.E.

Equities

LTOD

USY5217N1183

Construction & Engineering

Market Closed - London S.E. Other stock markets 11:35:12 2024-07-11 am EDT			5-day change	1st Jan Change
44.1 ^USD	+0.46%		+2.56%	+3.52%

Jul. 09	Larsen & Toubro Baga New Order of Up To INR25 Billion from Hindustan Shipyard	MT
Jul. 09	Larsen & Toubro Wins Order for Part Construction of Two Fleet Support Ships from M/s Hindustan Shipyard Limited	CI

Valuation

Fiscal Period: March	2020	2021	2022	2023	2024	2025	2026	2027
Capitalization ¹	1,132,397	1,991,613	2,483,319	3,041,966	5,187,683	4,978,294	-	-
Enterprise Value (EV) ¹	2,235,014	2,816,753	3,250,943	3,041,966	5,911,510	5,959,891	5,926,218	5,831,598
P/E ratio	11.9 x	17.2 x	28.7 x	29.1 x	40.2 x	31.2 x	24.6 x	21 x
Yield	2.23%	2.54%	1.24%	1.11%	0.74%	1.01%	1.2%	1.46%
Capitalization / Revenue	0.78 x	1.46 x	1.59 x	1.66 x	2.35 x	1.96 x	1.71 x	1.5 x
EV / Revenue	1.54 x	2.07 x	2.08 x	1.66 x	2.67 x	2.34 x	2.04 x	1.75 x
EV / EBITDA	13.7 x	18 x	17.8 x	14.7 x	25.2 x	21.2 x	17.5 x	14.9 x
EV / FCF	65.8 x	12.8 x	20.3 x	16 x	42.1 x	37.6 x	27.1 x	27.8 x
FCF Yield	1.52%	7.78%	4.94%	6.24%	2.38%	2.66%	3.69%	3.6%
Price to Book	1.49 x	2.63 x	3.01 x	-	6.01 x	5 x	4.37 x	3.92 x
Nbr of stocks (in thousands)	1,403,479	1,404,176	1,405,029	1,405,227	1,374,548	1,374,669	-	-
Reference price ²	806.8	1,418	1,767	2,165	3,774	3,621	3,621	3,621
Announcement Date	6/5/20	5/14/21	5/12/22	5/10/23	5/8/24	-	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: March	2020	2021	2022	2023	2024	2025	2026	2027
Net sales ¹	1,454,524	1,359,790	1,565,212	1,833,407	2,211,129	2,541,807	2,906,585	3,326,187
EBITDA ¹	163,290	156,241	182,173	207,533	234,940	281,226	338,867	391,636
EBIT ¹	138,667	127,199	152,694	172,510	198,113	241,958	298,260	347,078
Operating Margin	9.53%	9.35%	9.76%	9.41%	8.96%	9.52%	10.26%	10.43%
Earnings before Tax (EBT) ¹	134,310	85,420	145,304	171,090	205,171	248,950	312,340	372,262
Net income ¹	95,490	115,829	86,693	104,707	130,591	159,872	202,998	240,737
Net margin	6.57%	8.52%	5.54%	5.71%	5.91%	6.29%	6.98%	7.24%
EPS ²	67.95	82.41	61.65	74.45	93.88	116.2	147.3	172.6
Free Cash Flow ¹	33,944	219,218	160,530	189,840	140,558	158,527	218,924	209,983
FCF margin	2.33%	16.12%	10.26%	10.35%	6.36%	6.24%	7.53%	6.31%
FCF Conversion (EBITDA)	20.79%	140.31%	88.12%	91.47%	59.83%	56.37%	64.6%	53.62%
FCF Conversion (Net income)	35.55%	189.26%	185.17%	181.31%	107.63%	99.16%	107.85%	87.23%
Dividend per Share ²	18.00	36.00	22.00	24.00	28.00	36.45	43.47	52.84
Announcement Date	6/5/20	5/14/21	5/12/22	5/10/23	5/8/24	-	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2025 Q1	2025 Q2	2025 Q3	2025 Q4
Net sales ¹	641,076	395,629	528,507	358,532	427,626	786,158	463,897	583,352	478,820	510,240	989,060	551,278	670,787	535,889	574,578	644,909	779,920
EBITDA ¹	71,664	45,304	65,205	39,567	48,994	88,561	50,730	68,330	48,690	56,320	105,010	57,590	72,340	55,868	61,000	68,000	88,000
EBIT ¹	-	37,980	57,512	29,930	40,400	70,400	42,479	59,794	40,382	47,221	-	48,382	62,128	47,098	52,650	66,936	68,169
Operating Margin	-	9.6%	10.88%	8.35%	9.45%	8.95%	9.16%	10.25%	8.43%	9.25%	-	8.78%	9.26%	8.79%	9.16%	10.38%	8.74%
Earnings before Tax (EBT) ¹	54,132	35,556	55,616	29,319	39,400	68,800	43,364	59,074	43,324	49,911	93,234	47,718	64,218	45,200	51,000	58,000	79,000
Net income ¹	29,939	20,547	36,207	17,000	22,300	39,300	25,529	39,868	24,930	32,226	57,156	29,474	43,961	27,650	32,000	37,000	51,000
Net margin	4.67%	5.19%	6.85%	4.74%	5.21%	5%	5.5%	6.83%	5.21%	6.32%	5.78%	5.35%	6.55%	5.16%	5.57%	5.74%	6.54%
EPS	-	14.61	25.75	12.10	15.85	27.95	18.15	28.35	17.73	22.92	-	21.42	31.95	-	-	-	-
Dividend per Share ²	-	-	-	-	-	-	-	-	-	-	-	-	28.00	-	-	-	45.90
Announcement Date	10/27/21	1/28/22	5/12/22	7/26/22	10/31/22	10/31/22	1/30/23	5/10/23	7/25/23	10/31/23	10/31/23	1/30/24	5/8/24	-	-	-	-

¹INR in Million²INR

Estimates

Balance Sheet Analysis

Fiscal Period: March	2020	2021	2022	2023	2024	2025	2026	2027
Net Debt ¹	1,102,617	825,141	767,624	-	723,827	981,598	947,924	853,304
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	6.753 x	5.281 x	4.214 x	-	3.081 x	3.49 x	2.797 x	2.179 x
Free Cash Flow ¹	33,945	219,218	160,530	189,840	140,558	158,527	218,924	209,983
ROE (net income / shareholders' equity)	13.1%	16.2%	11%	12.2%	14.8%	17.2%	18.7%	19.6%
ROA (Net income/ Total Assets)	3.26%	3.74%	2.75%	-	3.87%	4.88%	5.2%	5.45%
Assets ¹	2,932,479	3,097,040	3,156,616	-	3,373,924	3,275,936	3,901,776	4,414,351
Book Value Per Share ²	543.0	540.0	587.0	-	628.0	724.0	828.0	923.0
Cash Flow per Share ²	47.60	163.0	136.0	162.0	133.0	144.0	179.0	204.0
Capex ¹	32,994	9,223	31,106	37,930	42,105	42,179	42,755	51,005
Capex / Sales	2.27%	0.68%	1.99%	2.07%	1.9%	1.66%	1.47%	1.53%
Announcement Date	6/5/20	5/14/21	5/12/22	5/10/23	5/8/24	-	-	-

¹INR in Million²INR

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Larsen & Toubro Limited

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

3,621 INR

Average target price

3,937 INR

Spread / Average Target

+8.71%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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