VALUE PICK AUGUST ’17: LARSEN & TOUBRO LIMITED


Company Background –

History –

Larsen & Toubro Limited was incorporated in the year 1946 as a private limited company. Earlier, the company was established as a partnership firm founded by two Danish engineers Henning Holk Larsen with Soren Kristian Toubro in Mumbai. In December 1950, the company became a Public Company with a paid-up capital of Rs.2 million.

Business –

  • Larsen & Toubro Limited (L&T) is a technology, engineering, construction, and manufacturing company. The company is one of the largest and most respected companies in IIndia’sprivate sector. The company operates in three segments (1) Engineering & Construction Segment, (2) Electrical & Electronics segment, (3) Machinery & Industrial Products and others.
  • The company’s Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines.
  • The company’s Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design.
  • The company’s heavy engineering division is organized into two independent companies: (1) Heavy Engineering Independent Company and (2) Ship Building Independent Company.
  • The company’s Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business.

International Presence –

L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The companys businesses are supported by a wide marketing and distribution
network, and have established a reputation for strong customer support.

Awards & Recognition –

The company received a host of awards, medals and trophies for their continuous efforts.

  • They received Environmental Excellence Gold award from Greentech Foundation during the years 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports.
  • The Ministry of Power conferred the first prize in National Energy Conservation for the year 2005.
  • During the year 2006-07, A Wall Street Journal survey featured L & T among Asias Most Admired Companies and ranked the company No.1 for the quality of products and for overall reputation.
  • In 2015 L&T Won Golden Peacock Award for Risk Management, Award for Excellence in Power Project Execution from the Central Board and Good Corporate Citizen Award.

Listed On –

The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.

Stock Information –

Larsen & Toubro Limited

Share Holding Pattern –

Larsen & Toubro Limited

Larsen & Toubro Limited – Financials

Larsen & Toubro Limited

Conclusion –
Considering the techno-funda analysis and sector outlook; Larsen & Toubro Limited looks good at Rs 1175. FinBlab recommends investing in a stock keeping a long-term view in mind.
Click here to see what other brokerage houses said about L&T.

 

Here is a snapshot of the previous value pick. Click Geecee Ventures, Sanghvi Movers, Swelect Energy, Glenmark Pharma to see the analysis.

 


Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.


 

 

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10 Comments

  • shailesh shah
    August 2, 2017 at 7:15 am

    Good one, your article is nice & useful , thanks

    • Vishal Dalwadi
      August 2, 2017 at 12:09 pm

      Thanks for reading my article and your feedback.

      • paresh Kunj ie steven
        August 19, 2017 at 8:54 pm

        Good to read it. Thanks.

        • Vishal Dalwadi
          August 20, 2017 at 3:51 pm

          Thank you very much for visiting my blog and your valuable feedback.

  • Reddy
    August 3, 2017 at 11:19 pm

    Can you please share your views on Arihant Capital for longterm?

    • Vishal Dalwadi
      August 4, 2017 at 1:24 pm

      Thanks for visiting my blog.

      The Company looks good.

      There are certain good points, like –
      1) P/E Ratio is in the comfort zone
      2) Debt to Equity ratio is NEEL
      3) ROE is good
      4) Company is paying regular Dividend
      5) Promoter holding

      Some concern areas are –
      1) Growth is missing as far as Income is concern
      2) Constant growth is missing as far as Net Profit and EPS is concern
      3) P/BV ratio is marginally high

      The company is in the right space (Broking, Finance & Investment) looking at the current market scenario. All the other broking firms have had a huge run-up in the recent past including this one. But for me the top line and bottom-line growth are important, so I’ll wait for that to happen before taking any position.

  • shivaji khairnar
    August 5, 2017 at 6:06 am

    Notify me your new posts by email

    • Vishal Dalwadi
      August 5, 2017 at 4:14 pm

      Thanks for visiting my blog. You can subscribe to my blog using subscription form, on the right-hand side at the bottom of the page. It’s easy and quick.

  • J S TYTAGI
    August 16, 2017 at 7:17 pm

    good info

    • Vishal Dalwadi
      August 17, 2017 at 12:21 pm

      Thanks for visiting my blog and your feedback.

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About me

Vishal Dalwadi

Vishal Dalwadi

Vishal is an MBA (Finance) post-graduate. He is the founder and owner of "FinBlab". His blog aims at providing information and research on Stock market and sectors including Mutual funds, IPOs, Insurance and more.

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