Larsen & Toubro Share Price

Founded in: 1946 Managing director: S N Subrahmanyan

Larsen and Toubro Ltd

Larsen & Toubro, or L&T, has been around since 1946 and is one of India’s biggest and most trusted companies. It’s known for handling a wide range of businesses, from engineering and construction to manufacturing, IT, and financial services.

What makes L&T stand out? It doesn’t just do a lot—it does it well. This diverse business portfolio has helped the company grow rapidly over the years. Its strong performance in the market also plays a key role in driving up the L&T share price.

The Origins and Growth

Larsen & Toubro was founded by two Danish engineers, Henning Holk Larsen and Soren Kristian Toubro, in Mumbai. They started off by importing machinery for India's rapidly growing industries. L&T then grew and branched out into many different areas.

Their expansion was no accident—it's driven by great leadership, a deep understanding of the market, and a strong focus on quality and keeping their customers happy. Fast forward to today, and L&T is one of India's top engineering giants.

With such a strong track record, the Larsen and Toubro stock price is often watched closely. It’s a good way to gauge how well the company is doing financially.

Expansion Through Key Acquisitions

In 1997, L&T launched LT Infocity Limited with the Andhra Pradesh Infrastructure Investment Corporation to boost IT infrastructure in Andhra Pradesh, aligning with India's IT growth ambitions. However, by 2016, L&T sold its 89% stake in LT Infocity to Ace Urban Developers for Rs 191 crore, refocusing on core sectors. In 2019, L&T deepened its tech investments by acquiring a 20.32% stake in Mindtree Limited for Rs 3,333.60 crore, reinforcing its commitment to integrating tech and digital solutions into its services. That same year, L&T acquired full ownership of LT Shipbuilding Limited by purchasing Tamil Nadu Industrial Development Corporation's stake, enhancing its reach into new sectors and strengthening its global position.

Key Business Divisions and Their Contributions to Growth

Larsen & Toubro’s success comes from its wide-ranging businesses, each contributing to its growth and market strength.

Engineering & Construction (ECCD): This division handles major infrastructure and energy projects, from airports to power plants, showcasing L&T’s engineering expertise. It plays a big role in driving revenue and boosting its stock.

Heavy Engineering: Specializing in high-tech components for power, defense, and industrial machinery, this division strengthens L&T’s global presence and enhances its competitive edge.

Technology & IT Services: Through L&T Infotech, the company provides digital transformation solutions worldwide. With digitalization on the rise, this sector is a key growth driver, positively impacting L&T’s stock value.

Electrical & Electronics (EED): Focused on automation and renewable energy, this division keeps L&T at the forefront of the power sector, especially with innovations in solar energy.

Financial Services: L&T Finance Holdings supports large-scale projects and provides stability, helping the company maintain steady performance even when core industries slow down.

Each of these divisions plays a crucial role in L&T’s success, ensuring long-term growth and strengthening its stock market position.

Key Projects and Global Presence

L&T’s big-project strategy has paid off. In 2016, it secured a $99.7 million contract to build high-speed patrol boats for the Vietnam Border Guard—the largest export order for a private Indian shipyard. The next year, it landed a ₹4,500 crore deal to supply self-propelled artillery guns to the Indian Army, the biggest private artillery contract at the time.

Beyond defense, L&T impressed in energy by completing a 660 MW supercritical power unit in Rajasthan in just 42 months. Its global reach is strong too, with major projects in the Middle East, Southeast Asia, and Africa. In 2017, its Hydrocarbon Engineering division won a ₹1,656 crore contract for ONGC’s Neelam Re-Development Project, cementing its position in the oil and gas industry.

Smart City and Infrastructure Developments

L&T has made big moves in urban infrastructure. In 2016, it won a contract to turn Nagpur into India’s first large-scale Smart City, a major step in its smart city journey. A year later, its subsidiary, L&T Construction, secured a ₹2,903 crore project to redevelop Mumbai’s historic BDD Chawls—one of the city’s largest redevelopment efforts.

Financial Strategies and Capital Investments

L&T’s financial strategies have been consistently strong, with the company’s focus on maintaining a healthy balance sheet and managing its borrowings effectively. In FY2019, L&T repaid long-term borrowings of USD 233 million (approximately Rs 1,610 crore), while also raising USD 100 million in foreign currency borrowings to meet its business requirements. This strategic approach to debt management has enabled the company to reinvest in its operations and continue pursuing expansion opportunities.

L&T’s capital expenditures are another important aspect of its financial strategy. As of 2019, the gross property, plant, and equipment, including leased assets, amounted to Rs 12,174 crore, with net investments standing at Rs 7,934 crore. The company continues to invest in state-of-the-art manufacturing facilities, research and development, and infrastructure to sustain its growth trajectory.

Larsen & Toubro’s Commitment to Sustainability

Sustainability has become a key focus area for Larsen & Toubro. The company recognizes the importance of addressing global environmental challenges, and it has committed to reducing its carbon footprint across its operations. Through its projects, L&T aims to contribute to the sustainable development of cities, infrastructure, and industries worldwide.

The company’s efforts in renewable energy, waste management, and sustainable construction practices are in line with global trends and the increasing focus on environmental sustainability. As governments and businesses prioritize sustainable practices, L&T’s initiatives are expected to play an important role in its continued growth.

A Commitment to Safety and Awards

L&T’s focus on safety and quality has earned it several top honours. In 2019, it received six British Sword of Honour awards and five-star certifications from the British Safety Council—proof of its high safety standards.

Its commitment to a safe work environment hasn’t gone unnoticed. Many of its projects have won prestigious awards, including the National Infrastructure Construction Awards and the MEED Quality Award in Oman.

Future Prospects and Stock Market Performance

Larsen & Toubro (L&T) is poised for a promising future, leveraging key trends like infrastructure development, digital transformation, and renewable energy. Strategic investments in these areas are expected to fuel its growth. L&T's diversified business model and success in securing large-scale projects make it appealing for long-term investors. As the company completes complex projects across sectors, robust financial performance is anticipated to positively influence the Larsen and Toubro share price, with analysts predicting steady growth.

As a big force in Indian infrastructure, L&T offers a pretty wide range of services in engineering, construction, technology, manufacturing, and financial services. It has significantly shaped India's infrastructure, especially in energy, transportation, and defense. Through strategic acquisitions and international partnerships, L&T has expanded its capabilities and presence both domestically and globally.