larsen & toubro ltd.breport.myiris.com/bcl1/lartoubr_20110218.pdf · 2011-02-22 · stock idea...
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Stock Idea – Larsen & Toubro Ltd.
1
Bajaj Capital Centre for Investment Research
Vol. 31 / 10-11 February 18, 2011
Buy CMP: 1639.15 Target: 2000.0
LARSEN & TOUBRO LTD. Upside: 22.0 % Horizon: 12 M
Analyst: Atul Kanwar
Phone: +91 11 66272300 Ext: 651
Email: [email protected]
Head of Research: Alok Agarwala
E-mail: [email protected]
Key Data
Sector Construction & Engineering
Face value (Rs.) 2.0
52-week high/low (Rs.) 2212.7 / 1410.0
Market cap (Rs. cr.) 99799.6
Book value (Rs.) 338.5
Price / book value 4.8
PE ratio (TTM) 18.8
Market cap / sales 2.3
Dividend (%) 625
Average daily volume (1 Y) 1214094
Beta 1.0
1 year return (%) 14.9
Shareholding Pattern
Source: BSE. As on Dec 31, 2010
Stock Performance
About the Company
Larsen & Toubro Ltd. (L&T) is an engineering, construction and manufacturing company.
Engineering & Construction segment comprises execution of projects in India & abroad to provide
solutions in civil, mechanical, electrical and instrumentation engineering. Electrical & Electronics
segment comprises manufacture and sale of low and medium voltage switchgear and custom-built
switchboards. Machinery & Industrial products segment includes manufacture and sale of
industrial machinery & equipment, marketing of industrial valves, construction equipment and
welding products. The company’s major subsidiaries are L&T Infotech (IT) and L&T Finance.
Investment Rationale
Value unlocking going forward
The L&T board has approved the restructuring of the company and implementation of the plan is
underway. As per the plan, the engineering and infrastructure giant will be divided into nine virtual
companies, each of which will have full fledged management team of its own and will also
manage its own profit and loss account. Some of the companies formed out of L&T will be listed
on the bourses before 2015. Power, hydrocarbon, machinery and product, switchgear, heavy
engineering, infrastructure, building and factories, metals & minerals and electrical businesses will
together make up the nine independent companies. Each of them is worth a billion dollars in
revenues or has the potential to reach there soon.
Nuclear Power presents a huge opportunity
Awarding of nuclear power projects to the tune of approximately Rs. 100,000 cr. is scheduled over
the next 5 years in India. The government has announced its intention of installing 62,000 mw of
nuclear power capacity by 2032, of which 25,000 mw is expected to be added by 2020. This will
be partly done through indigenous technology driven reactors for a capacity addition of about 7000
mw and the balance through technology transfers from countries such as Russia, France and USA.
L&T has a substantial role to play in this programme through its own manufacturing & EPC
capabilities. Towards this, the company signed MoUs with almost all the major international
nuclear technology suppliers. In order to further meet these demands, L&T has set up a joint
venture with Nuclear Power Corporation of India (NPCIL), to set up a heavy forging
manufacturing facility at Hazira, Gujarat. The company has also created and augmented dedicated
nuclear reactors and steam generator manufacturing capacity at Hazira. L&T is aiming to build
complete nuclear plants on a turnkey basis.
Venturing into banking business
L&T has plans to use its subsidiary L&T Finance, which is one of the largest NBFC’s in India to
start its own bank sometime in the near future. This would also benefit its main business of
Engineering & Construction as the company would have access to cheaper funds. It also plans to
increase its presence in the field of infrastructure financing through L&T Infrastructure Finance.
L&T Finance Holdings has filed for an IPO on September 27, 2010 to raise Rs ~1500 cr.
16.6%
37.2%
46.2%
FII DII Others
0
20
40
60
80
100
120
140
160
L&T NSE
Stock Idea – Larsen & Toubro Ltd.
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Bajaj Capital Centre for Investment Research
L&T has kick started a restructuring plan to
divide the company into nine independent
entities.
L&T recently delivered its first tranche of
nuclear equipment to US based Transnuclear
Inc. – a Areva company.
L&T Infotech, a subsidiary of L&T plans to
come out with a IPO soon. It has set itself a
target to double its revenues in the next 3-4
years.
Infrastructure investment picking up
Infrastructure investment in India is set to grow dramatically. For the Indian economy to maintain
its growth momentum, the provision of adequate infrastructure facilities is critical. The eleventh
five year plan (2007-2012) identifies high quality infrastructure as the most critical physical
requirement for attaining faster growth in a competitive global environment and also for ensuring
investment in less-developed regions. Moreover, the Planning Commission states that the total
investment needed in infrastructure would have to increase to ~9% of India’s GDP by the final
year of the eleventh plan period to meet India’s target GDP growth rate of 9%. Due to the shortage
of high quality construction companies in India, L&T is in an enviable position.
Infrastructure investment by government
Source: Goldman Sachs Research
Government’s infrastructure investment pie (11th plan)
24 27 2832
39 4658
94
115
143
3.0%
4.0% 4.0% 4.0% 4.0% 4.2%
4.5%
7.0%
8.0%
9.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
0
20
40
60
80
100
120
140
160
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10E FY11E FY12E
Infrastructure Investment (US$ billions) Spend as % of GDP
46%
25%
20%
7% 2%
Power Roads Railways Ports Airports
Stock Idea – Larsen & Toubro Ltd.
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Bajaj Capital Centre for Investment Research
L&T is also a frontrunner for the Rs. 5000 cr.
mono rail project for old Ahmedabad city
area.
The L&T Power’s BTG facilities are among
the largest of their kind in the world, with
present annual capacity of manufacturing
5000 mw of equipment , to be expanded to
6000 mw by 2012.
L&T & Europe’s Cassidian have formed a
joint venture to cater to the field of defense
electronics.
L&T concentrating on city rail projects
L&T along with Scomi rail of Malaysia has already bagged the contract for the first mono rail
project in Mumbai given by Mumbai Metropolitan Region Development Authority (MMRDA).
The company is also handling the Hyderabad metro rail project. It has bagged an order from
Chennai Metro Rail Ltd. (CMRL) for the design & construction of track work that is valued at Rs
449.2 cr. CMRL is a JV between the state govt. and the centre to set up a Rs 14000 cr. metro rail in
Chennai The railway unit of L&T has secured a slew of orders aggregating Rs 1103 cr. from
various power plant developers for the construction of dedicated railway lines to link power plant
sites to mainline rail network.
L&T’s power subsidiary growing at a brisk pace
The sales of L&T Power is expected to jump from US$ 400 mn to US$ 3 bn. L&T Power has a
joint venture with Japan's Mitsubishi Heavy Industries for manufacturing of supercritical
technology-based boilers and turbine-generator sets for thermal power units. The company has an
order book worth Rs. 32,000 cr. deliverable over the next two and a half years. With the
commissioning of the country’s largest integrated Boiler, Turbine, Generator (BTG) factory at
Hazira in Gujarat, L&T is well placed to meet its ~8,000 mw of boiler orders and ~9,000 mw of
turbine orders in hand.
Opportunities in Middle-East
The L&T-Galfar consortium, through international competitive bidding, has been awarded a US$
764 mn order for the design and development of the New Salalah International Airport in the
Sultanate of Oman. This is L&Ts largest overseas EPC order. L&T's scope will be ~US$ 500 mn
and the order is to be completed in 30 months. The Middle East comprises close to ~6% of the
company’s order-book, while other overseas geographies comprise ~2%. FIFA 2022 has been
awarded to Qatar. This will result into significant investments in the infrastructure development in
Qatar over the next decade, probably starting as soon as 12 months from now.
Huge order book position
The order book of L&T as on 6th January, 2011 stands at Rs.1,15,400 cr, 2.6 times its FY10
revenue. Road development portfolio of the company currently comprise of 5,682 lane kms spread
over 15 projects. The company also has 3 power projects with an aggregate generation capacity of
1559 mw. Apart from this, the company has 3 port projects (excluding Dhamra port) with
aggregate handling capacity of 45 mtpa involving a project cost of Rs 5,300 cr. Another
prestigious project being handled by L&T is the Hyderabad metro rail for 71.2 kms at a cost of Rs
12,132 cr. The company has 14 urban infrastructure projects at a cost of Rs 7,800 cr. Currently the
export orders accounts for just around 8% of the total order book. The robust order book of the
company clearly reflects the growth prospects in its future revenue earnings.
Order book: geography wise – 9MFY11
Source: Company
92%
6%
2%
Domestic Middle East Others
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Bajaj Capital Centre for Investment Research
L&T's power equipment subsidiary, L&T
Power, is set to become one of the top
contributors to the company's revenue by
2015.
L&T bagged orders worth Rs 36,000 cr. in the
first half of FY11, up 29% YoY.
The master plan of Dhamra Port project
provides for 13 berths that are capable of
handling more than 100 mtpa of dry bulk,
liquid bulk, containerized and general cargo.
Order book distribution: segment wise - Q3FY11
*’Process’ includes minerals & metals and bulk material handling, ‘Others’ includes shipbuilding, defense &
aerospace, construction & mining equipment, electrical & electronic products and technology services.
Source: Company
Order book: customer profile – 9MFY11
Source: Company
Dhamra Port - a big plus for the company The Dhamra Port Company Ltd (DPCL) is a 50:50 joint venture between L&T and Tata Steel.
DPCL has been awarded a concession by the govt of Orissa on BOOST (Build, Own, Operate,
Share & Transfer) basis for a period of 34 years including the 4 year period of construction. The
leased period may be renewed or extended for two additional periods of 10 years each on mutually
agreed terms & conditions. Dhamra Port is situated between Haldia and Paradeep in Orissa where
some of the important players like JSW Steel, Bhushan Steel and Visa Steel have either set up or
are in process of setting up facilities. It will be one of the deepest ports of India with a depth of 18
metres once it is fully operational. It can accommodate super cape-size vessels up to 180,000 dead
weight tonnage (dwt). The port is already operational and has handled over three coal ships which
brought over 80,000 tonnes of Australian coal in the past three months. The port has also tied up
with all the important steel and iron ore players in Orissa, West Bengal and Jharkhand.
37%
32%
14%
11%6%
Power Infrastructure Hydrocarbons Process Others
46%
40%
14%
Public (incl. PSUs) Private Dev. Projects
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Bajaj Capital Centre for Investment Research
Net sales have grown 40.3% YoY to Rs
11321.7 cr. in Q3FY11 from Rs 8071.4 cr. in
Q3FY10.
The total expenditure increased by 42.5% in
Q3FY11 compared to the same quarter of the
previous financial year.
Cost of services and raw materials jumped by
100.5% to Rs. 3055.6 cr. in Q3FY11 from Rs.
1524.1 cr. in Q3FY10 driven by higher
commodity prices.
Financial Performance – Q3FY11
Topline
Net sales – quarterly (Rs cr.)
Order inflows have reduced by 24.9% to Rs. 13,366 cr. in Q3FY11 from Rs. 17,793 in
Q3FY10.
Execution pickup was witnessed in infrastructure & power sectors.
Muted export sales of Rs. 1031 cr. in Dec-2010 quarter, down 36.8% from Rs. 1632 cr.
in Dec-2009 quarter.
Total Expenditure
Expenses – quarterly (Rs cr.)
Other operating and manufacturing expenses went up by 28.3% to reach Rs. 5572.8 cr.
in the December 2010 quarter compared to Rs. 4343.9 cr. a year ago.
Staff costs increased by 24% to Rs 677.2 cr. in Q3FY11 from Rs 546.1 cr. a year ago,
due to the manpower increase to meet growth.
Selling & distribution expenses shot up by 59.4% to reach Rs. 536.7 cr. in the third
quarter of 2011, compared to Rs. 336.7 cr. for the corresponding quarter, a year back.
Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
8071
13375
7835
9261
11322
Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
7139
11534
6878
8325
10175
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Bajaj Capital Centre for Investment Research
The PAT margins have shown a decline in the
last three quarters. But, in Q3FY11, they have
stabilized compared to Q2FY11, going down
only by 10bps.
The APAT has grown by 10.8% in Q3FY11
compared to the same quarter, a year back.
Engineering & Construction accounts for the
bulk of revenues of L&T.
Margins & Profitability
PBIDT & PAT margins - quarterly
The PBIDT margins have shown a declining trend due to the rising raw material prices.
The decline in Q3FY11 compared to Q2FY11 has been 190 bps.
The interest costs of L&T have been rising due to higher borrowing levels and rise in
interest rates.
Higher depreciation is due to the capacity additions.
Bottomline (after extraordinary items) – quarterly (Rs cr.)
Segment Finance
Segment net revenue breakup – 9MFY11
Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
15.1%
17.6%15.5% 14.8%
12.9%
8.5%10.0%
8.4%7.4% 7.3%
PBIDTM% PATM%
Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
759
1438
666765 841
84.9%
7.0%
6.5% 1.6%
Engineering & Construction Electrical & Electronics Machinery & Industrial Products Others
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Bajaj Capital Centre for Investment Research
Engineering & Construction segment’s
volatility in margins is mainly due to the rise
in steel prices.
Electricals & Electronics segment margins
have been impacted due to competitive
pressures and also due to the rise in the
copper and silver prices.
L&T compares well with its peers in APAT
margins and RONW. It also has a lower debt
to equity ratio compared to most of the
companies in its category.
Segment EBITDA breakup – 9MFY11
Source: Company
Engineering & Construction segment
Export order growth driven by Transmission & Distribution (T&D ) segment.
Boiler, Turbine, Generator (BTG) orders are seeing execution ramp up. There has also
been a pickup of execution in overall infrastructure orders.
Electrical & Electronics segment
Sales are being driven by gradual increase in the industrial demand.
L&T is making an effort to pass on the increased costs to the customers.
There has been a drop in exports in this segment.
Machinery & Industrial products segment
Growth in sales is due to the increased off-take in industrial valves.
Growth in revenue is also due to the increase in sales of mining & construction
equipment.
Peer Analysis
Engineering & Construction majors – comparison (standalone financials in Rs cr.)
Company
Net
Sales PAT
PBIDTM
(%)
APATM
(%) D/E
RONW
(%) P/E
P/BV
Mkt
Cap
Patel Engg. 2425.0 130.9 17.7 5.4 1.5 11.6 10.2 1.1 1394.3
BEML 2834.6 222.9 13.7 7.5 0.4 11.3 10.4 1.2 2435.3
Hind.Cons 3644.2 81.4 13.1 2.2 1.9 6.5 21.4 1.3 1962.0
Gammon Ind 4520.6 125.7 9.6 2.2 0.8 6.6 11.9 0.9 1547.3
Nag. Cons. 4759.2 232.6 11.6 4.2 0.7 10.2 12.0 1.1 2365.4
IVRCL Inf 5492.3 211.3 8.3 1.3 0.8 4.0 9.3 0.9 1691.4
Lanco Inf 5886.7 486.4 16.6 8.3 0.8 19.7 21.7 2.6 7933.7
Punj Lloyd 7116.7 367.4 11.4 5.2 1.0 11.9 0.0 0.6 2273.2
JP Assoc 10088.9 1708.4 28.4 9.4 2.1 13.5 20.7 1.9 15331.7
B H E L 33208.2 4310.6 20.5 12.5 0.0 29.9 19.9 6.4 102094.3
L&T 37013.2 4375.5 15.1 8.9 0.4 21.6 25.7 4.9 90222.4 P/E, P/BV & Mkt Cap figures are for February 9, 2011. Net Sales, PAT, PBIDTM(%), APATM (%) & RONW% stats are for FY10.
80.6%
7.2%
10.1%
2.1%
Engineering & Construction Electricals & Electronics Machinery & Industrial Products Others
Stock Idea – Larsen & Toubro Ltd.
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Bajaj Capital Centre for Investment Research
As L&T has 6% of their order book from
Middle –East , the evolving political situation
over there might hamper its business in these
countries.
Decision making in the hydrocarbon segment
has been slow and tardy at the very best in
terms of the overall projects in the space.
Also, L&T has been facing tough competition
from the foreigners especially the Koreans in
this field.
Given the scale of execution by L&T, any
delay in executing the projects would have an
adverse impact on the company’s finances.
Key Concerns
Economic slowdown
L&T covers the entire physical infrastructure field and thus is totally linked to the India growth
story. So, a slowdown of the Indian economy would automatically lead to a slowdown of the
company’s growth prospects.
Political instability
In 9MFY11, 46% of L&T’s customers have been from the government sector including PSU’s. So
any political instability or delay in awarding of projects could hamper the company’s growth
prospects.
Escalating raw material prices to hit margins
Rising prices of commodities like steel, copper, aluminium, cement etc. are bound to increase costs
and thus affect the margins of L&T negatively.
Increase in interest rates
The increase in interest rates is not good news for a company like L&T that is involved in building
the country’s infrastructure, as it means borrowing at higher rates that would impact its PAT
margins negatively.
Conclusion
L&T being the largest company in the Engineering/Construction/Infrastructure sector has a big
role to play in the coming years as India plans to revamp its Infrastrcuture drastically, to make sure
that its economy has a stable high single digit or even double digit GDP growth. The government
of India, realizing the acute necessity of improving the infrastructure is expected to take the
infrastructure spending to 9% of the GDP in FY12. L&T is taking a major restructuring exercise
where it is dividing the company into 9 separate profit centres. These divisions are going to be
listed in due time leading to value unlocking for the shareholders. L&T has geared up for the
massive need for power equipment in the coming years with the commissioning of its BTG facility
in Gujarat. In the field of nuclear power, the government of India plans awarding 100,000 cr. of
projects in the next 5 years. L&T has signed agreements with major nuclear equipment
manufacturers around the world to cater to this demand. In the long run, the company is planning
to develop its own nuclear power plants. After the success of the Delhi Metro, similar projects are
being planned in major Indian cities. L&T has already bagged the Mumbai mono rail project and is
the frontrunner for the Ahmedabad old city mono rail project. It also has the Hyderabad metro rail
project in its bag. Dhamra port, a 50:50 JV with Tata steel is going to provide L&T with revenues
for at least 30 years. With Dhamra being one of the deepest ports in India and a lot of steel plants
located in the vicinity, the port has good prospects. The current orderbook of the company stands
at Rs 1,15,400 cr.which is ~2.6 times its FY10 sales. L&T also has plans to open its own bank in
the near future.
L&T has a market capitalization of Rs 99799.6 cr. and is trading at a share price of Rs. 1639.15.
The consolidated TTM EPS is Rs. 87.2 translating into a TTM PE of 18.8. The price to book value
stands at 4.8. The stock is an attractive buy considering the growth prospects of the industry as
well as the company.
We recommend a “BUY” on the stock with an investment horizon of 12 months and target
price of Rs. 2000.
Stock Idea – Larsen & Toubro Ltd.
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Bajaj Capital Centre for Investment Research
SWOT Analysis
Strengths
• Huge order book position: L&T had a order book of1,15,400 cr. which is 2.6 times its FY10 revenues. Theorders are spread along all the segmnets of the infrastructuresector.
• A big player in the power sector: Power sector is boomingand L&T Power has an order book worth Rs 32000 cr. to beexecuted in next 32 months.
• Dhamra Port has started operations: L&T in a 50:50 JVwith Tata Steel has built the Dhamra port in Orissa onBOOST basis for a period of 34 years extendable by 20years.
• Commissioning of the BTG factory: The company hascommissioned the country's first integrated boiler, turbine,generator factory at Hazira in Gujarat.
• A leader in the city rail segment: L&T has already baggedthe Hyderabad metro rail and the Mumbai mono railprojects. It is also a frontrunner for the Ahmedabad old citymono rail project.
• Healthy growth in net sales: The net sales have grown by~40% in Q3FY11 compared to the same quarter, a year ago.
Weaknesses
• Rising interest costs: The interest costs of L&T has beenrising due to higher borrowing by the company and the risein interest rates.
Opportunities
• Huge investment expected in infrastructure sector: Hugeinvestment is expected in India's infrastructure going aheadas its current state is a big bottleneck in the economicgrowth achieving its full potential.
• Value unlocking in the company: L&T is in the process ofdividing the company into 9 separate units each acting as aprofit centre with separate management. In due time theseunits would get listed resulting into value unlocking for theshareholders.
• Nuclear power is a huge opprtunity: The government isplanning nuclear power generation in a big away andplanning to award contracts worth Rs. 100,000 cr. in thenext 5 years. L&T has tied up with international companiesto grab this opportunity with the longer term aim of buildingthe complete nuclear plant by itself.
• Opportunities in the middle east: L&T's majorityinternational ordetr book is from the middle east and it isexpecting more opportunities to open up with the FIFAworld cup being awarded to Qatar.
Threats
• Increase in raw material cost: Increase in the cost of steel,cement, copper, aluminium etc. would negatively impactL&T's bottomline.
• Slow decision making in the hydrocarbon space: Apartfrom the slow & tardy decisionmaking, there is stiffcompetition especially from the Koreans in this segment.
• Political situation in the middle east: L&T gets 6% of itsrevenues from the middle east markets. In case the politicalsituation there continues to boil, it would impact thebusiness prospects of the company in those markets.
• Deacceleration of India's GDP growth rate: As L&Tmirrors the growth of the country having its stake inpractically all the segments of the physical infrastructurepie, any decrease in GDP growth rate would impact thecompany's prospects too.
• Political instability: As the government including PSU'saccount for 46% of the company's order book, any kind ofpolitical instability that impacts decision making in thegovernment sector would hamper the company's fortunes.
• Execution delays: Any delays in execution would have anegative bearing on the company's business prospects.
Stock Idea – Larsen & Toubro Ltd.
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Larsen & Toubro: Business Structure
LARSEN & TOUBRO LTD.
Engineering & Construction
Construction
Building & Factories
Infrastructure
Metallurgical, Material Handling
& Water
Electrical Projects & Gulf Operations
E&C Projects
Upstream
Mid & Downstream
Power Development &
Construction
Heavy Industry
Heavy Equipment & Systems
Shipbuilding
Railway Projects
EPC Power
Electrical & Electronics
Electrical & Automation
Machinery & Industrial Products
Industrial Machinery &
Products
Construction & Mining Equipment
Integrated Engineering
Services
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Financials
Income Statement (Quarterly): Standalone
Rs. Cr.
Particulars Q3FY11 Q2FY11 Q3FY10 QoQ (%) YoY (%)
Net Sales 11321.7 9260.8 8071.4 22.3 40.3
Total Income 11660.3 9713.0 8379.3 20.0 39.2
Total Expenditure 10175.2 8325.1 7138.8 22.2 42.5
PBIDT 1485.1 1387.9 1240.5 7.0 19.7
PBIDT Margin % 13.1 15.0 15.4
Interest 175.7 193.2 133.9 -9.0 31.2
Depreciation 128.1 121.2 104.5 5.7 22.6
Tax 376.0 379.4 305.8 -0.9 23.0
APAT 840.5 765.0 758.8 9.9 10.8
APATM (%) 7.4 8.3 9.4
Financials (Annual):Consolidated
Rs. Cr.
9MFY11
(Standalone) 201003 200903 200803 200703 200603 200503
5 yr CAGR
%
Share Capital 121.8 120.4 117.1 58.5 56.7 27.5 26.0
Networth 20611.0 13682.8 10632.4 6797.1 4876.1 3216.1
Capital Employed
46655.0 35383.9 24015.2 13954.5 8516.4 6802.9
Debt 24607.3 20370.0 12315.9 6432.2 3498.7 3453.8
CWIP
6618.4 6205.4 3053.1 1455.3 426.6 176.3
Inventory 2378.2 2501.7 5019.0 3678.0 2477.4 2449.6
Sundry Debtors
12528.0 11491.1 8234.4 6110.4 5282.3 4315.8
Cash & Bank Balance 3321.6 1459.0 1560.8 1718.0 816.0 988.2
Revenues 28417.5 43969.8 40511.1 29456.9 20512.9 16561.3 14496.9 24.8
Total Income 29485.3 46594.3 41178.7 29882.0 21406.6 17076.9 15075.0 25.3
Total Expenditure 25378.5 36749.5 34845.4 25327.9 17705.3 14847.1 13213.0 22.7
PBIDT 4106.8 9844.9 6333.2 4554.1 3701.3 2229.8 1862.0 39.5
Interest 511.2 1520.2 1244.6 625.7 351.4 318.0 244.6 44.1
Depreciation 363.5 979.3 728.3 509.7 344.9 243.5 212.2 35.8
APAT 2176.8 3845.3 2924.3 2231.9 1800.0 1017.4 760.2 38.3
Cash Flow from Operating Activities 2117.8 496.0 -1239.2 2324.4 1061.7 353.7
Cash Flow from Investing Activities
-5107.8 -5076.9 -6615.3 -2562.5 -1353.8 -83.8
Cash Flow from Financing Activities 4880.8 4479.2 7697.3 1140.1 119.8 184.4
Free Cash Flows
-2989.9 -4580.9 -7854.6 -238.1 -292.0 269.9
Dividend % 625.0 525.0 850.0 650.0 1100.0 1375.0
EPS (Rs.) 36.4 88.3 51.5 39.8 39.5 22.7 20.2
Debt-Equity Ratio 1.3 1.3 1.1 0.9 0.9 1.1
RoNW %
31.0 24.1 26.1 38.9 30.6 39.0
Total Asset Turnover Ratio 0.7 0.8 0.9 1.0 1.1 1.2
Fixed Asset Turnover Ratio
3.1 4.0 4.3 4.0 4.2 4.0
PBIDT Margin % 14.5 22.4 15.6 15.5 18.0 13.5 12.8
APAT Margin % 7.7 8.7 7.2 7.6 8.8 6.1 5.2
Stock Idea – Larsen & Toubro Ltd.
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Bajaj Capital Centre for Investment Research
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This document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any
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Disclosure of interest:
1. BCL and its affiliates have not received compensation from the company covered herein in the past twelve months for Issue Management, Capital
Structure, Mergers & Acquisitions, Buyback of shares and other corporate advisory services.
2. Affiliates of BCL are currently not having any mandate from the subject company.
3. BCL and its affiliates do not hold paid up capital of the company.
4. The Equity Analyst and his/her relatives/dependents hold no shares of the company covered as on the date of publication of research on the subject
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