Larsen & Toubro Limited (LT) Fair Value & Analysis
Industrials · IN · Market cap ₹5.6T (≈ $59.4B) · ISIN INE018A01030
What is Larsen & Toubro Limited really worth?
Below-average quality, and trading another 81% above our fair value of ₹2,196.
As of Aug 21, 2026, the fair value of Larsen & Toubro Limited is ₹2,196 per share against a price of ₹3,966, so the fair value sits 45% below the price. A model estimate blended from multiple valuation models, recalculated regularly.
Strengths
Risks
Fair value as of: Aug 21, 2026
From 24 valuation models · updated 16 days ago
Share price −2.0% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (₹2,938). The favourable scenario is already priced in.
- Weak quality (32/100) and above fair value at the same time, the margin of safety is missing on both counts.
- A fairly wide model range (₹1,372 to ₹2,938) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.
How to read this chart
60‑month range ₹1,269 – ₹4,374 · fair‑value band ₹1,372 – ₹2,938 · the ₹3,966 price screens above the ₹2,196 fair value. Dashed = 300-day average. As of Aug 21, 2026.
Analysis
Larsen & Toubro Limited (LT) currently trades at ₹3,966, while our model-based Fair Value estimate is ₹2,196, implying the stock looks roughly 80.6% overvalued today. The Quality Score stands at 32/100 (below-average quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of ₹5,353 per share, and 7 of the 24 models we run sit above the ₹3,966 price. Bear case: the Asset-Based group reads lowest at ₹532.30, and 17 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Larsen & Toubro Limited generated revenue of ₹2.8T at a net margin of 5.8%. Revenue grew 11.1% year over year. It earns a return on equity of 16.5%. Net debt stands at ₹1.1T. Fundamentals as of Aug 21, 2026
Our scenario range runs from ₹1,372 (bear case) to ₹2,938 (bull case); at ₹3,966, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 22% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −45%, LT screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹55.72 per share, which is 2.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Growth Earnings (₹5,353) versus Asset-Based (₹532.30). Highest evidence: EPV (74).
Notify me when LT reaches fair value
Put LT on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.
Set up alert →Free, no payment details. Unsubscribe anytime in one click.
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 33 · Market factors (momentum, volatility) 61
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations in India and internationally.
Full company description
Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations in India and internationally. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Energy Projects segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning services for the oil and gas industry; coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages; and engineering, procurement, and construction solutions in green energy space. The Hi-Tech Manufacturing segment designs, manufactures/constructs, supplies, and revamps/retrofits engineered critical equipment and systems for the process plants, nuclear energy, and green hydrogen sectors; marine and land platforms, and related equipment and systems, as well as aerospace products and systems, and precision and electronics products and systems for defense, security, space, and industrial sectors; and electrolysers. The IT & Technology Services segment offers information technology and integrated engineering services, e-commerce/digital platforms and data centres, and semiconductor chip design solutions. The Financial Services segment provides retail and wholesale financing services. The Development Projects segment develops, operates, and maintains infrastructure projects; and engages in toll and fare collection, as well as power generation and development activities. The Others segment manufactures and sells industrial valves and rubber processing machinery; manufactures, markets and services construction equipment and parts; and markets and services mining machinery and parts. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Larsen & Toubro Limited reported revenue of ₹2.8T in FY2026 versus ₹65.7B in FY2022, a compound +156.5%/yr. Reported net income was ₹161B in FY2026, compounding +102.5%/yr from FY2022.
LT screens 81% overvalued. Compare with Quanta Services, Inc →
Peer Group
Engineering & Construction · 817 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Engineering & Construction median · lower = cheaper
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Quanta Services, Inc PWR | $620.06 | $143.92 | −77% |
| Vinci SA DG | €113.95 | €185.62 | +63% |
| Comfort Systems USA, Inc FIX | $1,610 | $519.97 | −68% |
| Ferrovial N.V FER | €57.28 | €19.17 | −67% |
| HOCHTIEF Aktiengesellschaft HOT | €426.00 | €203.87 | −52% |
| Samsung C&T Corporation 028260 | 373,000 KRW | 261,411 KRW | −30% |
| EMCOR Group EME | $754.16 | $549.47 | −27% |
| MasTec, Inc MTZ | $241.00 | $100.00 | −59% |
| Bouygues SA EN | €46.65 | €65.67 | +41% |
| Sterling Infrastructure, Inc STRL | $460.03 | $198.57 | −57% |
Compare Larsen & Toubro Limited with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Industrials stocks →
Try a ready-made strategy
Pick a strategy and jump into the live analysis with that exact screen applied.
Discover tools
Frequently asked questions
Is Larsen & Toubro Limited (LT) overvalued or undervalued?
What is the fair value of LT?
What is the quality score of LT?
What is the price target for Larsen & Toubro Limited (LT)?
What is the Larsen & Toubro Limited stock forecast for 2026?
What is the revenue of Larsen & Toubro Limited (LT)?
What is the net profit margin of LT?
Does Larsen & Toubro Limited pay a dividend?
Watch Larsen & Toubro Limited in the live analysis
One click puts Larsen & Toubro Limited on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
Watch for free →Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.