Larsen & Toubro Stock Forecast: L&T Share Price Target
In this post, we will discuss the L&T share price target for the upcoming year. We will analyse the estimated stock price of the company so that you can make better decisions about investing in it. Before we dive into the company’s share price predictions, let’s first understand the company’s background, financials, technical fundamentals, etc.
Larsen & Toubro Limited: An Overview
Larsen & Toubro Limited, commonly known as L&T Limited, was established in 1946. It is an Indian multinational conglomerate company whose business is spread across engineering, construction, manufacturing, technology, information technology, and financial services.
The company is counted among the top five construction companies in the world. L&T Group comprises 93 subsidiaries companies, 5 associate companies, 27 joint ventures, and 35 jointly operating companies.
| Company name | Larsen & Toubro Limited |
| Industry | Construction and Engineering |
| Founded | 7 February 1946; 77 years ago |
| Country | India |
| Official website | www.larsentoubro.com |
Key Metrics
| Market Cap | ₹ 3,13,029 |
| Sectoral Market Cap Rank | 1 |
| Total Revenue | ₹ 186,269.87 crore (US$23 billion) (FY 2023) |
| Net Income | ₹ 10,470.72 crore (US$1.3 billion) (FY 2023) |
| Total Assets | ₹ 330,352.21 crore (US$41 billion) (FY 2023) |
| Total Equity | ₹ 103,567.22 crore (US$13 billion) (FY 2023) |
| PE Ratio (x) | 29.90 |
| Price to Book Ratio (x) | 4.41 |
| EPS – TTM (₹) | 74.50 |
| Primary Exchange | NSE / BSE |
| Stock – 52 Week High & Low | ₹ 2,416.35 / ₹ 1,456.35 |
Highlights of the L&T stock forecast are shown in the table below.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2023 | ₹ 2,450 | ₹ 2,690 |
| 2024 | ₹ 2,700 | ₹ 3,100 |
| 2025 | ₹ 3,100 | ₹ 3,550 |
| 2026 | ₹ 3,500 | ₹ 4,000 |
| 2027 | ₹ 3,950 | ₹ 4,470 |
| 2028 | ₹ 4,450 | ₹ 5,200 |
| 2029 | ₹ 5,100 | ₹ 5,750 |
| 2030 | ₹ 5,700 | ₹ 6,500 |
| 2040 | ₹ 14,000 | ₹ 16,500 |
Important Note: These are stock forecasts of “Larsen & Toubro Limited” and are for reference purposes only. Short-term and long-term L&T share price targets could differ materially from the forecast due to the different time series analysed. These forecasts are valid only when there is positive market sentiment. This analysis does not incorporate any uncertainties in the company or global market conditions.
Future Growth
Our Larsen & Toubro Limited Growth forecast shows that its earnings and revenue will grow at 19.6% and 10.8% per annum, respectively. EPS is expected to grow by 19.2%. The return on equity is estimated at 15.7% in 3 years.
Key information
| Revenue growth rate | 10.8% |
| Earining growth rate | 19.6% |
| EPS growth rate | 19.2% |
| Construction earnings growth | 22.7% |
| Future return on equity | 15.7% |
Earnings and Revenue Growth Forecasts
L&T Limited’s earnings vs. the market
As per our forecast earning growth of L&T Limited i.e. 19.60% per year (As you can see in the above chart-1) is growing faster than the Indian market earning 18.80%.
L&T Limited’s earnings vs. the industry
As per our forecast, earnings growth for L&T Limited will be 19.60% per year, and industry growth will be 22.70%, which is more than the forecasted L&T growth.
L&T Limited’s revenue vs. the market
As per our forecast revenue growth of L&T Limited i.e. 10.80% per year (As you can see in the above chart-2) is growing faster than the Indian market revenue 10.20%.
L&T Limited’s revenue vs. the industry
As per our forecast, revenue growth for L&T Limited will be 10.80% per year, and industry revenue growth will be 11.70%, which is more than the forecasted L&T revenue growth.
Future Return on Equity
As per our forecast, L&T Limited ROE is to be low in 3 years i.e. 15.7%.
L&T Limited Past Performance
When we analyse the past performance of the L&T company, its earning grew at an average annual rate of 0.5%, on the other hand, the construction industry shows an earning growth of 9.1% per year. If we talk about the revenue of the company it grows at an average rate of 6.4% per year. The company maintained a net profit margin of 5.5% and a return on equity is 12%.
Key information (Updated as on 31st March 2023)
| Revenue growth rate | 6.4% |
| Earining growth rate | 0.5% |
| EPS growth rate | 0.5% |
| Construction earnings growth | 9.1% |
| Return on equity | 12% |
| Net Profit Margin | 5.5% * |
*L&T Limited Net profiit margin 5.5% are higher than the previous financial year 5.4%.
Analysis of Past Earnings Growth of L&T
Earning Trend
If we analyse the previous 5-year earnings of L&T Limited, its earnings have grown by 0.5% per year over the past 5 years.
Accelerating Growth
L&T Limited’s earnings growth for the past year was 20.6%, which exceeds its 5-year average earning growth of 0.5% per year.
L&T Limited’s earnings vs. the industry
Last year, L&T Limited’s earnings growth was only 20.6%, while the construction industry showed a growth rate of 22.90.
L&T Limited’s earnings vs. the market
As shown in the graph, the earnings growth (20.60%) of L&T Ltd. has been greater than the market earnings growth (17.90%).
Return on Equity
If we analyze the return on equity of L&T Limited it was 12%, which is considered low.
L&T Limited’s stock forecast for the upcoming years
L&T share price target for 2023
The year 2023 appears to be an exponential opportunity for those looking to invest in L&T Limited’s stock. Right now, there is a lot of potential for growth in the stock this year. Due to this, we can see further growth in the stock price. However, if the market trends maintain an average pace, the price may stabilise at ₹ 2,690 in the year 2023. So, if you are an active investor, then 2023 can be a suitable year for you to invest.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2023 | ₹ 2,450 | ₹ 2,690 |
L&T share price target for 2024
It appears that 2024 will be the year of higher growth opportunities as compared to the previous year. This year, the company will also have good opportunities for growth, due to which its revenue is expected to increase and perform well. As per our forecast method, the stock of the company will also see growth and will be able to give good returns to its investors.This year the minimum price will be ₹ 2,700 and maximum to ₹ 3,100. However, one must stay careful and vigilant enough to keep a constant eye on the rising market trends. You can make more money if you apply sufficient caution than you might have by investing in these stocks.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2024 | ₹ 2,700 | ₹ 3,100 |
L&T share price target for 2025
According to stock market knowledge and sound judgement of stocks, we predict that 2025 will be a great year for all the investors who have invested their time and money in L&T Limited. The stocks can reach a maximum high of ₹ 3,550 and a maximum low of ₹ 3,100. However, before responding to these recommendations for any stock, you must do your own research and analysis. Trading and investing involve a significant level of risk, so consult a financial expert before making any decisions.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2025 | ₹ 3,100 | ₹ 3,550 |
L&T share price target for 2026
The company has built its fast-growing business around a strong balance sheet, which provides a platform to raise additional resources to capitalise on unprecedented opportunities. L&T Limited’s share price is expected to go up to ₹ 4,000.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2026 | ₹ 3,500 | ₹ 4,000 |
L&T share price target for 2027
Several researchers have made stock predictions for L&T Limited for 2027. As per our forecasted stock price, the share price of the company will reach ₹ 4,470. This stock can be a good option for long-term investment.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2027 | ₹ 3,950 | ₹ 4,470 |
L&T share price target for 2028
As per our analysis and considering the current and past market trends, we believe that the stock will grow at an exponential and unpredictable rate over the next five years. If this happens, then the stock can reach the ₹ 5,200 mark by 2028. This prediction is only valid if there are positive market sentiments; any uncertainties in the company or global market conditions are not covered in this analysis.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2028 | ₹ 4,450 | ₹ 5,200 |
L&T share price target for 2029
This year the minimum share price of L&T will be ₹ 5,100 and the maximum of ₹ 5,750 as per our stock forecasted methodology.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2029 | ₹ 5,100 | ₹ 5,750 |
L&T share price target for 2030
The year 2030 seems to hold a lot of potential for L&T Limited Stock. Over the years, the company’s financial structure made it possible to grow the business without periodic equity dilution, strengthening the potential for increasing shareholder value. As per our expert’s prediction for this year, L&T’s minimum share price will be ₹ 5,700 and the maximum price will be ₹ 6,500. However, you may do your research and analysis before investing.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2030 | ₹ 5,700 | ₹ 6,500 |
Also Read: Paytm Share Price Target for 2024, 2025, 2026, 2028, and 2030
L&T share price target for 2040
If we look at the stock prediction of the company till 2040, then it can go up to ₹ 16,500. Due to this, it can be an option for long-term investment. However, one must be careful and vigilant to keep a constant eye on the growing trends of the market. If you are careful enough, you can earn more than what you invest in these stocks.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2040 | ₹ 14,000 | ₹ 16,500 |
Recommendations: Invest in L&T stock or sell it?
As per the current data, L&T’s share price and possibly its market sentiment have been in a bullish cycle for the last 12 months. It is always easier to trade in a bull market, so you may want to favour these stocks under the given circumstances, but always read about optimal investment strategies if you are new to investing.
As per our predictive stock analyst, the company’s stocks may be good to invest in. If you are good at personal finance and want to invest, then you can invest in this stock.
FAQ’s
What is the PE ratio of L&T Limited?
The current PE ratio (price-earnings ratio) of L&T Limited is 29.90.
What is the 52-week high and low of L&T Limited's share price?
L&T Limited's share price saw a 52-week high of ₹ 2,416.35 and a 52-week low of ₹ 1,456.35.
What will L&T Limited's share price forecast be for 2024?
According to our forecast, the share price of L&T Limited in 2024 can be at least ₹ 2,700 and, at its maximum, around ₹ 3,100.
What will be the L&T Limited share price forecast in the next 5 years?
According to our forecast, the share price of L&T Limited in the next five years can be at least ₹ ₹ 4,450 and at its maximum, around ₹ 5,200.
What will be the L&T Limited share price forecast in the next 7 years?
According to our forecast, the share price of L&T Limited in the next five years can be at least ₹ 5,700 and at its maximum, around ₹ 5,700.
Is it profitable to invest in L&T Limited stock?
As per our predicted stock analysis, Larsen & Toubro Limited will have a positive trend in the future, and its shares may be good to make money from investments. If you are good with personal finance and want to invest, then you can invest in this stock.
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