Larsen & Toubro Limited (LTOD.L) stock analysis
In our weekly check, Larsen & Toubro Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6.
About Larsen & Toubro Limited
Larsen & Toubro Limited is an Industrials company (Engineering & Construction) based in India, listed on LSE as LTOD.L.
What our checks show for LTOD.L
Red flags
- Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
- The gross margin fell by 3.8 points, to 32.1%: costs are rising faster than prices.
- The dividend takes 2734% of profit: little cushion if profit falls.
- The stock has fallen as much as 87% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 14.3 years.
- Thinly traded (about 10 thousand shares a day): buying and selling can move the price.
Warning signs
- Net debt is 3.3x a year of EBITDA (debt/equity 1.24). That limits room in a downturn and raises refinancing risk.
- The net margin is only 5.7%: little room if costs rise.
- Free cash flow is only 4.2% of revenue.
Strengths
- Analysts expect earnings per share to grow about 21.4% a year over the next years.
- Revenue grew 16.1% a year over the last 3 years.
- Earnings per share grew 16.2% a year over the last 3 years.
- Net profit grew 15.4% a year over the last 3 years.
- A large company: market value $59.92 billion.
- Beta 0.59: the stock usually moves less than the market.
Next earnings report: 2027-02-03
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Questions
What grade does Larsen & Toubro Limited (LTOD.L) have?
In our weekly check, Larsen & Toubro Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of LTOD.L stock?
This week's biggest flags for Larsen & Toubro Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 9 of 25 checks show a warning or a red flag.
What does Larsen & Toubro Limited do?
Larsen & Toubro Limited is an Industrials company (Engineering & Construction) based in India, listed on LSE as LTOD.L.
When does Larsen & Toubro Limited report earnings next?
The next earnings report is expected on 2027-02-03. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-11-07
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