Executor of the capex cycle at a cyclical multiple
Larsen & Toubro (L&T) is a technology, engineering and construction company with global operations. It is one of the largest and most respected companies in India’s private sector. In the Engineering & Construction business, L&T operates as a contractor in key verticals including process industries, oil and gas, infrastructure, power, minerals, nuclear power and aerospace, water, civil structures, etc. It also undertakes turnkey projects in these fields.
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.
Key people: Mr. Sekharipuram Narayanan Subrahmanyan (MD & Chairman) · Mr. Ramamurthi Shankar Raman (President & Whole-Time Director of Finance) · Mr. Subramanian Sarma (Deputy MD, President & Whole-Time Director) · Mr. Subramanian Narayan (Company Secretary & Compliance Officer) · Mr. Tharayil Madhava Das B.Tech. (Senior Executive VP of Energy of Hydrocarbon & Whole-Time Director) · Mr. Sudhindra Vasantrao Desai (Senior Executive VP of Infrastructure & Whole Time Director)
Larsen & Toubro major competitors are GMR Airports, NBCC (India), Cemindia Projects, Engineers India, Welspun Enterprises, NCC, Power Mech Projects. Market Cap of Larsen & Toubro is ₹5,38,684 Crs. While the median market cap of its peers are ₹15,844 Crs.
Larsen & Toubro seems to be less financially stable compared to its competitors.Altman Z score of Larsen & Toubro is 2.27 and is ranked 6 out of its 8 competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
India's largest engineering, procurement and construction (EPC) conglomerate, executing infrastructure, hydrocarbon, power, renewable/green energy, defence and heavy engineering projects, alongside listed IT/technology subsidiaries (LTIMindtree, L&T Technology Services) and L&T Finance. Order book of Rs 7.78 trillion at Jun-2026 is the largest of any Indian contractor; 52% of the order book and 51% of revenue are now international, dominated by Middle East hydrocarbon and renewables work.
TTM P/E 31.2x on screener (7-Sep-2026); 5-year average P/E not sourced - not verified. EV/EBITDA n.m.; dividend yield 0.9%.
| Siemens | Siemens trades at ~93x P/E (screener, 7-Sep-2026) on Rs 24,846 cr revenue versus L&T at ~31x on Rs 2.86 lakh crore revenue; similar ROE (19.2% vs 15.9%) but three times the multiple. |
| ABB India | ABB is at ~102x P/E with 22.4% ROE; superior returns but priced for perfection, and its Rs 13,203 cr revenue base gives no exposure to the Middle East/energy EPC cycle L&T is winning. |
| BHEL | BHEL trades at ~60x P/E with 6.2% ROE and Rs 1,600 cr FY26 profit; L&T earns 12x the profit at half the multiple with far stronger execution and working-capital metrics. |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Industrials — 4.8%: stock-specific ideas inside a sector we are cautious on
The house is cautious on the capex complex — defence, railways, capital goods, renewables — not because the businesses are poor but because the valuations already discount years of order-book growth and the retail ownership is crowded. That caution is not a ban. The strategy is sector-agnostic and stock-selective, and four of our industrial positions are exactly that: L&T is the one large-cap engineering franchise whose multiple (28x FY28E) is below its growth (order book ₹7.8 lakh crore, +27% YoY; inflow guidance 10–12%) because the market treats it as a cyclical; Astral is a building-products compounder that sold off with PVC prices; Indo-MIM is the world's largest metal-injection-moulding company and a new listing; Dilip Buildcon is a road contractor at 20x FY28E where the balance-sheet repair is done and the bid pipeline is not. The macro backdrop is supportive at the margin: central capex is ₹12.2 lakh crore in FY27 (+11%), 28% of it already spent in the first months versus 24.5% last year, capital-goods order inflows are up 15–20%, the NHAI awarding target is 4,500 km with a ₹1.4 lakh crore bid pipeline, and manufacturing capacity utilisation at 74–78% is around the level at which private machinery capex historically begins. We would rather own the executors of that spend at reasonable prices than the order-book multiples of defence and railway names.
We own no defence (HAL, BEL, BDL: 40–60x for government-monopsony order books), no railways (RVNL, IRFC, Titagarh) and no renewables (Suzlon, Inox Wind, Waaree) — great businesses for an extended period, but the valuations and investor faith are extreme. Among capital-goods bellwethers, ABB, Siemens and Cummins at 50–70x price a private-capex boom that machinery data (26% of GFCF) does not yet confirm. Bharat Forge is a good company at 40x with a defence premium; we prefer RK Forgings (Autos) for the same end-markets at a cyclical trough. Supreme Industries is owned only in AIF I; in the PMS Astral is the pipes expression.
| Nuclear Projects Construction Segment Market Share | 51 % | as of Mar 18 |