Search
+
Invest with Confidence. Lead with Insights.
  • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

Investing

Why L&T stock is a value buy even at a PE multiple of 37x

Why L&T stock is a value buy even at a PE multiple of 37x
Why L&T stock is a value buy even at a PE multiple of 37x
L&T Defence plant in Talegaon, Maharashtra; image credit: L&T

Synopsis

L&T started investing in defence around the same time as its diversification into IT. While the latter has been hived off in the last decade, and is commanding a hefty market cap, defence is still away from becoming a USD1 billion topline business. As the indigenisation drive and rising exports makes defence a sunrise sector, L&T stands to gain.

Larsen & Toubro (L&T) is by far the largest engineering and construction company in India. Over the past year, the stock has returned 55% against Nifty 50’s 21% gains. Despite high past returns, the stock is still undervalued. And this has a lot to do with its defence business. Through the years, L&T has diversified into finance, information technology and defence. Its listed subsidiaries in finance and IT command premium valuations,
  • FONT SIZE
  • SAVE
  • PRINT
  • COMMENT
New Feature Refer & Earn
ET

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

The Economic Times