# Larsen & Toubro (LTOD.LSE)

Canonical: https://gigainvestors.com/s/LTOD.LSE

Analysis as of: 2026-10-16T07:34:19.061Z. Financial observations: FY2002–FY2026.

Listing currency: USD. Reporting currency: INR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $38.25 per share; close as of 2026-10-15.

Estimated value: low $18.19 per share, central $20.07 per share, high $22.56 per share. Buy at or below the central value $20.07 per share. Valuation as of 2026-10-16T07:34:19.061Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.09×

- FY2019: 0.10×

- FY2020: 0.11×

- FY2021: 0.12×

- FY2022: 0.12×

- FY2023: 0.11×

- FY2024: 0.10×

- FY2025: 0.10×

- FY2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.1%

- ROIC, second-lowest year: 5.4%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 31.9%

- Recent gross margin (lower of latest and 3-year median): 32.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.3%

- ROIC including acquisitions, ten-year median: 5.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.4%

- FY2018: 5.4%

- FY2019: 6.0%

- FY2020: 7.4%

- FY2021: 6.7%

- FY2022: 8.9%

- FY2023: 10.0%

- FY2024: 11.3%

- FY2025: 3.1%

- FY2026: 13.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: INR 511B

- Net income, five-year total: INR 538B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -3.5 pp

- Working capital / revenue, change between three-year averages: -14.3 pp

- Working capital / revenue, final three-year average: 42.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.95×

- FY2023: 0.97×

- FY2024: 0.97×

- FY2025: 0.84×

- FY2026: 0.96×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.4% vs 11.3%

- Per-share earnings: 42.86 to 94.91 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: INR 2.69T

- Cumulative retained earnings: INR 634B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 10.4%

- Per-share value change: INR 52.05

- Per-share value, starting three-year median: INR 42.86

- Per-share value, ending three-year median: INR 94.91

- Average buyback yield: 1.7%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: INR 168B

- Cumulative net income, 10 years: INR 972B

- ROIC, first three-year median: 5.4%

- ROIC, last three-year median: 11.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: INR 42.86

- FY2018: INR 52.49

- FY2019: INR 63.38

- FY2020: INR 67.94

- FY2021: INR 82.36

- FY2022: INR 61.63

- FY2023: INR 76.10

- FY2024: INR 94.91

- FY2025: INR 39.94

- FY2026: INR 116.88

### accounting: pass

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 0.30×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.04×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -0.3%

- FY2018: 7.1%

- FY2019: 4.9%

- FY2020: 0.9%

- FY2021: -3.7%

- FY2022: -3.3%

- FY2023: -3.7%

- FY2024: -1.5%

- FY2025: -1.0%

- FY2026: -0.1%

## Holders

## Price story

Price needs cash profits to grow 10.7% a year for ten years · sales +282.1%

Story as of 2026-10-16T10:00:00.073Z; price observation 2026-10-15.

Price needs cash profits to grow 10.7% a year for ten years

### Sales · FY2025–2026

sales +282.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: INR 1.08T 

- FY2018: INR 1.18T 

- FY2019: INR 1.33T 

- FY2020: INR 1.48T 

- FY2021: INR 1.34T 

- FY2022: INR 1.56T 

- FY2023: INR 1.82T 

- FY2024: INR 2.19T 

- FY2025: INR 744B 

- FY2026: INR 2.84T 

### Gross margin · FY2026

gross margin 32.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 28.3% 

- FY2018: 29.5% 

- FY2019: 28.3% 

- FY2020: 31.8% 

- FY2021: 35.5% 

- FY2022: 35.8% 

- FY2023: 35.8% 

- FY2024: 33.4% 

- FY2025: 31.8% 

- FY2026: 32.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are INR 2.8 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2026: revenue 2842251900000; grossProfit 911763500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LTOD.LSE: Larsen & Toubro Limited engages in engineering, procurement, and construction projects (EPC) in India and internationally. The company operates through four segments: Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, and Others. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission & distribution, renewables, water and effluent treatment, and minerals and metals. The Energy Projects segment provides EPC solutions in clean energy space, oil & gas, refineries, petrochemicals & offshore wind energy sectors, from front-end design through detailed engineering, modular fabrication, procurement, project management, construction, installation and commissioning; CarbonLite solutions for power generation plants including power generation equipment with associated systems; and carbon capture utilization and utility packages. The Hi-Tech Manufacturing segment designs, manufactures/constructs, supplies, and revamps/retrofits custom designed engineered critical equipment and systems for the process plants, nuclear energy, and green hydrogen sectors; marine and land platforms, related equipment and systems, and aerospace products and systems; precision and electronics products and systems; and electrolysers. The other segment engages in realty; smart infrastructure and communication projects; construction equipment; and industrial product design development, including marketing and servicing of construction equipment, mining machinery and parts thereof, manufacture and sale of rubber processing machinery, and ecommerce/digital platforms and data centers. It has a strategic partnership with General Atomics Aeronautical Systems, Inc. to manufacture Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft Systems (RPAS) in India, for the Indian armed forces. The company was founded in 1938 and is headquartered in Mumbai, India.

### Why customers stay

Margins ranged from 31.8% to 33.4% during 2024–26; it earns 7.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2024: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2025: grossProfit / revenue = 31.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2026: grossProfit / revenue = 32.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); 10-year return on capital observations [[2017,0.054068348207932694],[2018,0.05404390698772022],[2019,0.06022085076063252],[2020,0.07388391254536913],[2021,0.06732115722452962],[2022,0.08915024508090161],[2023,0.09984899313436876],[2024,0.11275999300696987],[2025,0.030990012081734377],[2026,0.13339714889612692]]; median 0.07060253488494939. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 36% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); Gross margin observations: [[2021,0.3552747965726417],[2022,0.3583518883173042],[2023,0.3580625429439008]]; range within 2 percentage points.

### Where the cash goes

Spends 2.9% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2017: growth capex 6087800000; upkeep 23699300000; owner earnings 60412300000. Growth capex / owner earnings = 0.10077086950836171.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2018: growth capex 9484400000; upkeep 19287300000; owner earnings 73698600000. Growth capex / owner earnings = 0.1286917254873227.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2019: growth capex 19832647932.341335; upkeep 22993452067.658665; owner earnings 85288147932.34134. Growth capex / owner earnings = 0.23253697510320515.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2020: growth capex 9745500000; upkeep 24622700000; owner earnings 95490300000. Growth capex / owner earnings = 0.10205748646721186.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2021: growth capex 0; upkeep 18077000000; owner earnings 125887100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2022: growth capex 1726000000; upkeep 29380300000; owner earnings 82613600000. Growth capex / owner earnings = 0.020892443859122468.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2023: growth capex 7595900000; upkeep 33842000000; owner earnings 101135699645.95526. Growth capex / owner earnings = 0.07510602118332985.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2024: growth capex 8418300000; upkeep 36747000000; owner earnings 126756717302.32648. Growth capex / owner earnings = 0.06641304839033955.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2025: growth capex 0; upkeep 44188300000; owner earnings 46296940000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); FY2026: growth capex 4444400000; upkeep 43647500000; owner earnings 154367601707.07. Growth capex / owner earnings = 0.028791015412895717.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); Dividend observations: [[2017,17015100000],[2018,19607600000],[2019,22431800000],[2020,39296100000],[2021,36508900000],[2022,25283800000],[2023,30914200000],[2024,42169500000],[2025,38495700000],[2026,46762200000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LTOD.LSE SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.7% yearly over ten years; actual growth was 14.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.061Z); Ten-year compound average after fade. Initial solved rate 0.14081044859137204. Price 38.25; FX 0.01054; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 28.3227725542364 → FY2026 112.17613729859649. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.67 per share

- 2016-11: $13.30 per share

- 2016-12: $13.27 per share

- 2017-01: $14.30 per share

- 2017-02: $14.57 per share

- 2017-03: $16.13 per share

- 2017-04: $18.10 per share

- 2017-05: $18.10 per share

- 2017-06: $17.20 per share

- 2017-07: $18.20 per share

- 2017-08: $17.70 per share

- 2017-09: $17.65 per share

- 2017-10: $18.65 per share

- 2017-11: $17.95 per share

- 2017-12: $19.35 per share

- 2018-01: $22.20 per share

- 2018-02: $20.40 per share

- 2018-03: $20.10 per share

- 2018-04: $21.05 per share

- 2018-05: $20.05 per share

- 2018-06: $18.34 per share

- 2018-07: $18.84 per share

- 2018-08: $19.00 per share

- 2018-09: $17.34 per share

- 2018-10: $17.56 per share

- 2018-11: $20.10 per share

- 2018-12: $20.45 per share

- 2019-01: $18.40 per share

- 2019-02: $18.12 per share

- 2019-03: $19.92 per share

- 2019-04: $19.24 per share

- 2019-05: $22.10 per share

- 2019-06: $22.35 per share

- 2019-07: $19.98 per share

- 2019-08: $18.26 per share

- 2019-09: $20.80 per share

- 2019-10: $21.10 per share

- 2019-11: $18.50 per share

- 2019-12: $18.38 per share

- 2020-01: $18.94 per share

- 2020-02: $16.28 per share

- 2020-03: $10.78 per share

- 2020-04: $11.60 per share

- 2020-05: $12.16 per share

- 2020-06: $12.44 per share

- 2020-07: $12.34 per share

- 2020-08: $13.26 per share

- 2020-09: $12.46 per share

- 2020-10: $12.20 per share

- 2020-11: $15.20 per share

- 2020-12: $17.42 per share

- 2021-01: $18.24 per share

- 2021-02: $19.44 per share

- 2021-03: $19.24 per share

- 2021-04: $17.94 per share

- 2021-05: $20.30 per share

- 2021-06: $20.10 per share

- 2021-07: $21.70 per share

- 2021-08: $23.50 per share

- 2021-09: $23.20 per share

- 2021-10: $24.40 per share

- 2021-11: $23.30 per share

- 2021-12: $25.45 per share

- 2022-01: $25.40 per share

- 2022-02: $24.55 per share

- 2022-03: $23.30 per share

- 2022-04: $22.10 per share

- 2022-05: $21.10 per share

- 2022-06: $19.70 per share

- 2022-07: $22.95 per share

- 2022-08: $23.90 per share

- 2022-09: $22.80 per share

- 2022-10: $24.10 per share

- 2022-11: $25.25 per share

- 2022-12: $25.30 per share

- 2023-01: $25.55 per share

- 2023-02: $25.50 per share

- 2023-03: $26.50 per share

- 2023-04: $29.00 per share

- 2023-05: $26.30 per share

- 2023-06: $30.10 per share

- 2023-07: $32.70 per share

- 2023-08: $32.40 per share

- 2023-09: $36.30 per share

- 2023-10: $35.20 per share

- 2023-11: $37.80 per share

- 2023-12: $42.60 per share

- 2024-01: $41.90 per share

- 2024-02: $42.20 per share

- 2024-03: $45.30 per share

- 2024-04: $43.30 per share

- 2024-05: $43.60 per share

- 2024-06: $42.60 per share

- 2024-07: $45.60 per share

- 2024-08: $44.70 per share

- 2024-09: $44.40 per share

- 2024-10: $42.90 per share

- 2024-11: $44.00 per share

- 2024-12: $42.00 per share

- 2025-01: $40.90 per share

- 2025-02: $36.20 per share

- 2025-03: $40.20 per share

- 2025-04: $39.20 per share

- 2025-05: $42.55 per share

- 2025-06: $42.80 per share

- 2025-07: $41.05 per share

- 2025-08: $40.50 per share

- 2025-09: $41.40 per share

- 2025-10: $45.05 per share

- 2025-11: $45.60 per share

- 2025-12: $44.70 per share

- 2026-01: $42.60 per share

- 2026-02: $46.40 per share

- 2026-03: $37.15 per share

- 2026-04: $42.00 per share

- 2026-05: $43.10 per share

- 2026-06: $43.50 per share

- 2026-07: $40.65 per share

- 2026-08: $41.85 per share

- 2026-09: $38.55 per share

- 2026-10: $37.85 per share

## Annual estimated value (USD per share)

- FY2017: low $4.76 per share, central $6.24 per share, high $7.11 per share

- FY2018: low $5.80 per share, central $7.81 per share, high $8.98 per share

- FY2019: low $9.01 per share, central $12.28 per share, high $14.18 per share

- FY2020: low $11.14 per share, central $15.18 per share, high $17.53 per share

- FY2021: low $11.93 per share, central $15.69 per share, high $17.88 per share

- FY2022: low $13.33 per share, central $17.63 per share, high $20.14 per share

- FY2023: low $15.58 per share, central $20.77 per share, high $23.79 per share

- FY2024: low $16.05 per share, central $21.70 per share, high $25.00 per share

- FY2025: low $8.16 per share, central $8.65 per share, high $9.31 per share

- FY2026: low $17.86 per share, central $19.68 per share, high $22.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations