At a Glance
L&T is the engineering juggernaut that builds everything from skyscrapers to submarines, bridges to bomb-proof bunkers. FY25 net profit? ₹18,547 crore. Revenue? ₹2.64 lakh crore. With a market cap of ₹4.97 lakh crore, it’s India’s favorite infrastructure wizard. The stock trades at a P/E of 32, which screams “premium pricing,” and its order book could probably wrap around the planet twice.
1. Introduction
Imagine a company so deeply embedded in India’s growth story that it’s practically part of the GDP itself. That’s Larsen & Toubro. Whether it’s hydrocarbon projects in the Middle East, solar plus battery plants in Bihar, or defense equipment for the armed forces—L&T’s fingers are in every pie.
The FY25 performance tells a simple tale: revenue up 16%, PAT up 18%, and order inflows booming. Investors are watching this stock like it’s the IPL final.
2. Business Model (WTF Do They Even Do?)
L&T is not a one-trick pony; it’s an entire circus:
- EPC Projects: Infra, power, hydrocarbon, heavy engineering.
- IT Services: Through LTIMindtree.
- Financial Services: Lending via L&T Finance (now demerged).
- Defence & Manufacturing: Submarines, missiles, and the works.
- Green Energy: Hydrogen plants, solar, and ESG bonds.
Their strategy? Diversify, dominate, and deliver.
3. Financials Overview
- FY25 Revenue: ₹2,64,294 Cr
- Operating Profit: ₹33,715 Cr (OPM 13%)
- Net Profit: ₹18,547 Cr
- EPS: ₹115.39
- Order Book Growth: 18% YoY
Commentary: Margins slightly under pressure, but growth is rock solid.
4. Valuation
- EPS (TTM): ₹115.4
- Price: ₹3,616
- P/E: 31.99
- Book Value: ₹710 → P/BV 5.1×
Valuation Check
- P/E Fair Range: 28–34 → Fair Value ₹3,200–₹3,800
- P/BV Fair Range: 4.5–5.5 → Fair Value ₹3,200–₹3,900
- DCF: With
