Larsen & Toubro (L&T), one of India’s leading infrastructure and engineering conglomerates, has showcased strong long-term growth, delivering a 156.83% return in the past five years. However, in the last one year, the stock has been relatively flat, gaining just 0.77%, signaling short-term consolidation despite a robust order book and strong sectoral tailwinds.
As of February 11, 2025, the stock is trading at ₹3,326.30, down from its 52-week high of ₹3,963.50, while its 52-week low stands at ₹3,175.05. L&T has a market capitalization of ₹4.57 lakh crore, a P/E ratio of 32.84, and a dividend yield of 0.84%, making it a key player in India’s infrastructure and capital goods sector.
Stock Performance Overview
Over the past five years, L&T has capitalized on India’s infrastructure boom, securing massive government and private sector contracts across roads, railways, metro projects, and defense manufacturing. The company’s execution capabilities, diverse business portfolio, and strong balance sheet have been key factors behind its stellar 156.83% return in five years.
However, the last one-year performance has remained subdued, with the stock gaining just 0.77%, reflecting profit booking, volatility in capital goods stocks, and global economic uncertainties. Despite this, strong earnings visibility, a robust order pipeline, and favorable government policies in infrastructure and defense keep the company well-positioned for future growth.
Stock Performance at a Glance
- 5-year return: +156.83%
- 1-year return: +0.77%
- Current market price: ₹3,326.30
- 52-week high: ₹3,963.50
- 52-week low: ₹3,175.05
- Market capitalization: ₹4.57 lakh crore
- P/E ratio: 32.84
- Dividend yield: 0.84%
Key Factors Influencing Performance
L&T has consistently expanded its infrastructure, engineering, and defense segments, ensuring a steady revenue stream. However, factors such as rising interest rates, commodity price fluctuations, and global economic headwinds have impacted short-term stock performance.
The company’s order inflows and execution rate will be key drivers in determining future growth. While its long-term fundamentals remain strong, short-term volatility and investor sentiment have led to range-bound movement in the past year.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. Stock market investments are subject to market risks, and past performance does not guarantee future returns. Investors should conduct their own research and consult a financial advisor before making investment decisions. Neither the author nor the publication assumes responsibility for any financial losses resulting from actions based on this content.
