Larsen & Toubro Limited (L&T) is one of India’s leading conglomerates with roots stretching back to 1938. With a formidable presence in numerous markets, including heavy engineering, construction and infrastructure, L&T has made immense strides over the years and become an influential player in a variety of industries. In this blog post, we will be focusing on the company’s share price – LT share price – as well as its performance on the market.
LT Share Price Graph
About the Company
Larsen And Toubro Limited, more popularly known as L&T or LT is a prestigious name in the Indian infrastructure sector. They are engaged in engineering, construction, and manufacturing business.
The company has a good bit of history associated with its name. Long ago, in 1934, two young Danish engineers namely Henning Holck-Larsen and S.K. Toubro came to India as representatives of a Danish engineering company F L Smidth & Co to oversee the merger of subsidiaries of Associated Cement Company (ACC). Later, they stayed in India and formed Larsen And Toubro in 1938 which was turned into a limited company in 1946 as Larsen And Toubro Limited. The Danish legacy made it a leader in the construction sector. Post-second war, the crisis in the infrastructure sector and the need for new installation and engineering took the company to new heights.
Today it is an undisputed leader in the engineering and construction sector. Today this engineering firm and its associates have diversified business interests in the following divisions.
- Erection and installation of systems
- Turnkey projects
- Electrical and electronic systems and products
- Engineered systems and products
- Industrial consumables and machinery valves
- Information technology
L&T has many subsidiaries and associated companies. Moreover, most of them are direct subsidiaries engaged in engineering, construction, and infrastructure business in India and abroad. But there are a few subsidiaries that are engaged in a business like Information technology and related business, financial services, machine and engineering products manufacturing and related business.
Larsen And Toubro Limited have received numerous national and international awards of excellence for its performance in the banking and financial sector.
Company Financials for Analyzing LT Share Price
The share price of L&T Limited was Rs 812.30 at the end of 30 October 2018 on the National Stock Exchange. The current market cap is Rs 52982.13 crores. The face value of each share of L&T is Rs 2. The earning per share or EPS is Rs 31.39 as per the average share price of the trailing 12 months’ data. The price over earning ratio or P/E stands at 26.01. The Book Value per share is Rs 1273.19. The price over book value ratio or P/BV is 0.64. The Dividend yield is 0.67%. The 52 weeks high price is Rs 1300.00 and 52 weeks low is Rs 756.00.
The quarter ending June 2018 reported a sales figure of Rs 16856.70 crores. Other operating income stands at Rs 0.00 crores. The operating profit stands at Rs 3462.43 crores. Other income stands at Rs 232.95 crores. The EBITDA is Rs 3695.38 crores. The net profit stands at Rs 1,116.07 crores. The earning per share or EPS of this quarter stands at Rs 16.96.
For the quarter that ended 30 September 2018, the company has reported consolidated sales of Rs 32080.83 crores, up by 13.43% from last quarter’s Sales of Rs 28283.45 crores and increased by 21.30% from last year’s same quarter sales of Rs 26446.76 crores. The company reported a net profit after tax of Rs 2689.63 crore in this quarter.
The company earns its lion’s share of revenue from different sectors like construction, manufacturing & trading, property development, engineering and other sectors of the Indian market. In the audited financial report ending on 30 March 2018, the company reported In year earnings from key product segments which include earnings from construction works which contributed Rs 66978.07 crores to total sales value (89.76% of Total Sales).
Earnings from manufacturing & trading activities contributed Rs 5575.56 crores amounting to 7.47% of total sales value. Other operating revenue contributed Rs 1042.08 crores (1.39% of the total sales value). Revenue from other services contributed Rs 666.64 crores amounting to 0.89% of the total sales value. Revenue from commission contributed Rs 159.80 crore (0.21% of Total Sales). Earnings from property development contributed Rs 96.68 crore (0.12% of total sales). Revenue from lease rentals contributed Rs 74.08 crore (0.09% of total sales) and earnings from engineering contributed Rs 18.74 crore (0.02% of total sales value) for the financial year ending 31 March 2018.
The top management of L&T includes Mr Adil Siraj Zainulbhai, Mr A M Naik, Mr Ajay Shankar, Mr Arvind Gupta, Mr D K Sen, Mr Akhilesh Krishna Gupta, Mr Hemant Bhargava, Mr M Damodaran, Mr Jayant Damodar Patil, Mr M M Chitale, Mr Narayanan Kumar, Mr M V Satish, Mr R Shankar Raman, Mr Sanjeev Aga, Mr S N Subrahmanyan, Mr Shailendra Narain Roy, Mr Subramanian Sarma, Mr Subodh Bhargava, Mr T Thomas Mathew, Mrs Naina Lal Kidwai, Mr Vikram Singh Mehta, Mrs Sunita Sharma.
Moreover, the company has appointed M/S Deloitte Haskins & Sells LLP as its auditors.
As on 30 September 2018, the company has a total of 1,402,220,289 nos of shares outstanding.
The LT Share Price shareholding pattern of the company currently has different shareholders in the manner as stated below.
- The foreign institutions or FIIs hold 260,505,504 nos of shares amounting to 18.58% of total shares.
- Others hold another 283,330,657 nos or shares or 20.21% of total shares.
- The NBFCs and mutual funds together hold another 204,705,402 nos of shares or 14.60% of total shares.
- The general public also holds 300,727,929 nos of shares which is equivalent to 21.45% of total shares.
- A total no of 24,011,520 shares which are equivalent to 1.85% of total shares are subscribed to GDR.
- Financial institutions hold another 323,659,026 nos of shares or 23.08% of total shares.
- In addition, a total number of 3,377,188 nos shares which are equivalent to 0.24% of total shares are being held by the Central Government.
Final Thoughts about LT Share Price
All in all, Larsen and Toubro’s share price has experienced a great deal of volatility since it was first launched. While L&T’s performance has not been consistent, investors can count on solid long-term fundamental strengths for this well-established powerhouse player in the Indian market. Despite short-term fluctuations, given its strong fundamentals and promising outlooks, L&T is an attractive option to consider as an investment choice for any long-term investor looking to capitalize on the growth potential of India.