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Engineering & construction Historical case study · data as of 30 Jun 2026 · published 03 Oct 2026 (95 days later)

Larsen & Toubro — 100-point case study

How Larsen & Toubro looked on 50 technical and 50 fundamental measures on 30 Jun 2026 — and what happened over the next three months. Education only; not a current view.

CodesNSE: LT · BSE: 500510
Close on 30 Jun 2026₹4,143.40
Market cap then₹5,70,150 crore
ValuationP/E 30.1× · P/B 5.22×
MomentumRSI (14) 56 · 1-year return +12.9%
Next 3 months-10.9% vs Nifty 50 -6.0% (to 01 Oct 2026)

Scorecard

Technical — 50 points

22 bullish · 23 neutral · 0 caution · 4 bearish — the picture leaned positive.

Fundamental — 50 points

11 bullish · 32 neutral · 0 caution · 6 bearish — the picture leaned positive.

Price chart

3,2193,5423,8644,1874,509Jul 25Oct 25Jan 26Apr 26Jul 26Oct 26R1 4,440S1 3,988S2 3,837Snapshot 30 JunWhat happened next →
Close (to snapshot) Close (after) 50-day avg 200-day avg Support Resistance
Data note: Daily prices for L&T came from equitypandit.com (Yahoo history was unavailable) and were cross-checked with stockanalysis.com and investing.com for overlapping months. Screener's 'Net Profit' includes minority interest.

Technical analysis — 50 points

Calculated by code from daily prices up to 30 Jun 2026. Standard formulas (RSI, MACD, ADX use Wilder smoothing).

A. Trend

#PointReadingTagCommentary
1Short-term trend (20 days)slope +0.44%/dayBullishOver the last 20 sessions the regression line of closing prices was rising about 0.44% a day — a short-term uptrend.
2Medium-term trend (~5 months)3M return +17.8%NeutralThe 100-session trend line was up (+0.01%/day) and the stock was +17.8% over three months, so the medium-term picture was neutral.
3Long-term trend (1 year)1Y return +12.9%BullishCompared with a year earlier the price was +12.9%. A strong positive year.
4Weekly chart trend10W 4,047.23 / 30W 3,978.68BullishOn the weekly chart the stock showed a weekly close above a rising 10-week and 30-week average stack.
5Swing structure (highs/lows)last highs 4,139.50→4,128.00; lows 3,847.00→3,854.40NeutralThe two most recent swing points showed a lower high but a higher low — mixed structure.
6ADX (14) — trend strength21.9BullishADX at 21.9 shows a trend of moderate strength. ADX measures strength only, not direction.
7+DI vs –DI+DI 28.8 / –DI 18.5Bullish+DI was above –DI: upward price pressure outweighed downward pressure.

B. Moving averages

#PointReadingTagCommentary
8Price vs 20-day SMA4,075.25 (+1.7%)BullishClose of 4,143.40 was 1.7% above the 20-day SMA — the short-term trend filter was positive.
9Price vs 50-day SMA4,031.04 (+2.8%)BullishClose of 4,143.40 was 2.8% above the 50-day SMA — the medium-term trend filter was positive.
10Price vs 200-day SMA3,936.54 (+5.3%)BullishClose of 4,143.40 was 5.3% above the 200-day SMA — the long-term trend filter was positive.
119 / 21 EMA crossover9E 4,159.53 / 21E 4,104.23BullishThe 9-day EMA was above the 21-day EMA; the last crossover happened on 15 Jun 2026.
12Golden / death cross (50 vs 200)last golden cross 03 Jun 2026BullishThe 50-day average was 2.4% above the 200-day. The most recent signal was a golden cross on 03 Jun 2026.
1350-day SMA slope+4.0% in 20 sessionsBullishThe 50-day average rose 4.0% over the past month — rising.
14MA ribbon alignment4,075 / 4,031 / 3,978 / 3,937BullishThe 20/50/100/200-day averages were perfectly stacked bullish (20 > 50 > 100 > 200).
15Monthly anchored VWAP4,084.27 (+1.4%)BullishAnchored to the start of June, the volume-weighted average price was 4,084.27; the close was above it — buyers that month were on average in profit.

C. Momentum

#PointReadingTagCommentary
16RSI (14)56.2BullishRSI at 56.2 showed positive momentum without being overbought.
17RSI divergence (last 40 days)noneNeutralComparing the last 20 sessions with the 20 before: no divergence — RSI moved in line with price.
18MACD line vs signalMACD 58.23 / signal 53.43BullishMACD was above its signal line — momentum turning or staying positive.
19MACD histogram (5-day change)22.46 → 4.79BearishThe histogram fell over the last five sessions, meaning momentum was weakening.
20MACD vs zero line58.23BullishMACD above zero means the 12-day EMA was above the 26-day EMA — a positive momentum regime.
21Stochastic (14,3,3)%K 76.7 / %D 81.0BearishSlow stochastic at 76.7 was mid-range with %K below %D.
22Williams %R (14)-30.8Neutral%R of -30.8 put the close in the middle of its 14-day range.
23CCI (20)41NeutralCCI at 41 was within the normal ±100 band.
24Rate of change (10-day)-0.6%NeutralPrice changed -0.6% over ten sessions.

D. Volatility

#PointReadingTagCommentary
25Bollinger Band position (%B)%B 0.63 (bands 3,809.60–4,340.90)Neutral%B of 0.63 — inside the bands, upper half.
26Bollinger width / squeezewidth 13.0% (53rd pct of 6M)NeutralBand width was at the 53rd percentile of the last six months, a normal level.
27ATR (14)₹78.79 (1.9% of price)NeutralA typical day's range was about ₹78.79, or 1.9% of the price — useful for judging how much 'normal noise' to expect.
28Historical volatility (30-day)21.4% vs 1Y 25.3%NeutralAnnualised 30-day volatility was 21.4%, close to the one-year level of 25.3%.
29Keltner Channel (20, 2×ATR)3,954.90–4,261.39NeutralThe close was inside the channel, so no volatility breakout.
30Beta vs Nifty 50 (1Y daily)1.40NeutralA beta of 1.40 means the stock tended to move more than the Nifty 50 day to day.

E. Volume & money flow

#PointReadingTagCommentary
31Volume vs 20-day averagelast day 0.77× / 5-day 1.09×NeutralThe final session traded 0.77× its 20-day average volume and the last five sessions averaged 1.09× — normal participation.
32Up-day vs down-day volume (20d)ratio 1.18BullishAverage volume on up days was 1.18× that on down days — accumulation-leaning.
33On-Balance Volume (20d)OBV risingBullishOBV rose over the month while price rose — volume confirmed the price move.
34Accumulation/Distribution linefalling (20d)BearishThe A/D line fell, meaning closes tended to be in the lower part of daily ranges on meaningful volume.
35Chaikin Money Flow (20)-0.20BearishCMF at -0.20 indicated net outflows.
36Money Flow Index (14)57.8BullishMFI, a volume-weighted RSI, was 57.8.
37Liquidity (avg daily turnover)₹818 cr/dayNeutralAbout ₹818 crore changed hands per day on average over 20 sessions — highly liquid.

F. Price levels

#PointReadingTagCommentary
38Support levels (S1/S2/S3)3,987.76 / 3,837.03 / 3,738.05NeutralNearest support (prior swing lows) sat at 3,987.76, 3.9% below the close, then 3,837.03, 3,738.05.
39Resistance levels (R1/R2/R3)4,440.00NeutralNearest resistance (prior swing highs) sat at 4,440.00, 7.2% above the close.
40Monthly pivot points (for next month)P 4,090.03 | R1 4,325.67 | S1 3,907.77NeutralClassic pivots from June's high/low/close gave a pivot of 4,090.03; the close was above it.
41Fibonacci retracement (6M swing)23.6% 3,560 | 38.2% 3,728 | 50.0% 3,864 | 61.8% 4,000NeutralMeasuring the 6-month fall from 4,440.00 to 3,288.10, the close was nearest the 61.8% retracement at 3,999.97.
4252-week high / lowH 4,440.00 / L 3,288.10NeutralThe close was 6.7% below the 52-week high and 26.0% above the 52-week low.
43Unfilled price gaps (6M)3 open; latest gap-up 15 Jun at 4,059.80NeutralThere were 3 unfilled gap(s). The latest, a gap-up on 15 Jun 2026, left an open level at 4,059.80 that price had not revisited.

G. Patterns

#PointReadingTagCommentary
44Price structure / chart patternbroad sideways rangeNeutralRule-based pattern scan: broad sideways range. (Classical patterns like head-and-shoulders are judgement calls; we report only what the rules detect.)
45Breakout / breakdown (20-day)range 3,854.40–4,272.30NeutralThe close was inside the prior 20-day range of 3,854.40–4,272.30.
46Latest candlestickOrdinary red candleNeutralOn 30 Jun the candle opened 4,183.00, ranged 4,134.10–4,193.80 and closed 4,143.40: Ordinary red candle. Single candles are weak signals on their own.
47Ichimoku Cloudcloud 3,718.55–3,957.75; Tenkan 4,203.20 / Kijun 4,063.35BullishPrice was above the cloud and the Tenkan line was above the Kijun line — a bullish Ichimoku setup.

H. Relative strength & summary

#PointReadingTagCommentary
48Relative strength vs Nifty 501M +0.3% / 3M +13.7%BullishThe stock outperformed the Nifty 50 by 13.7 points over three months and outperformed by 0.3 points over one month.
49Relative strength vs Nifty 50 (6M)6M +9.8%BullishNo sector index in today's data set, so we show the 6-month comparison instead: 9.8 points ahead of the Nifty 50.
50Technical summary22 bullish · 4 bearish · 23 neutral · 0 cautionBullishAcross the 49 readings the technical picture leaned positive. Levels that mattered: support 3,987.76, resistance 4,440.00. This is a description of the chart on 30 Jun 2026, not a forecast.

Fundamental analysis — 50 points

Uses only results published by 30 Jun 2026: FY26 annual (Apr 2025–Mar 2026), the Jan–Mar 2026 quarter and the Mar 2026 shareholding. ₹ crore, consolidated unless stated. Valuation uses the 30 Jun 2026 close.

A. Valuation

#PointReadingTagCommentary
1P/E (trailing 12 months)30.1×NeutralAt ₹4,143.40 the market valued the company at about ₹5,70,150 crore, or 30.1× the ₹18,954 crore profit of the four quarters to Mar 2026. That is a premium multiple — the market expected growth.
2Price / Book5.22×NeutralMarket cap was 5.22× the Mar 2026 book value (equity + reserves) of ₹1,09,290 crore.
3Price / Sales1.99×NeutralThe company was valued at 1.99× its trailing-12-month sales of ₹2,85,875 crore.
4EV / EBITDA (approx.)19.2×NeutralEnterprise value (market cap + ₹1,25,497 cr borrowings; cash not netted) was 19.2× trailing operating profit of ₹36,146 crore.
5Earnings yield3.3%NeutralThe inverse of P/E: each ₹100 invested bought about ₹3.3 of annual earnings. Investors often compare this with the ~6–7% yield on 10-year government bonds.
6PEG (P/E ÷ 3-yr profit CAGR)2.03BearishP/E of 30.1 divided by 3-year profit growth of 14.8% a year gives a PEG of 2.03. Below 1 is often read as growth being cheaply priced; above 2 as expensive.
7Dividend yield (trailing 12M)0.92%NeutralDividends with ex-dates in the 12 months to the snapshot totalled ₹38 a share, a 0.92% yield on the ₹4,143.40 price.
8Market capitalisation₹5,70,150 crNeutralAt about ₹5.70 lakh crore the company was a large-cap, among the largest listed companies in India.
9Graham number vs price₹1,568.92 vs ₹4,143.40NeutralBenjamin Graham's conservative fair-value yardstick √(22.5 × EPS × book value per share) came to ₹1,568.92; the price was 164% above it. Quality franchises usually trade above this number.

B. Growth

#PointReadingTagCommentary
10Revenue growth FY26 (YoY)+11.8%BullishRevenue for FY26 was ₹2,85,874 crore, +11.8% versus FY25.
11Q4 FY26 revenue growth (YoY)+11.3%BullishThe Jan–Mar 2026 quarter brought ₹82,762 crore of revenue, +11.3% on the same quarter a year earlier.
12Net profit growth FY26 (YoY)+7.2%NeutralFY26 net profit was ₹18,954 crore, +7.2% on FY25's ₹17,673 crore.
13Q4 FY26 profit growth (YoY)-0.4%BearishQuarterly profit was ₹6,133 crore versus ₹6,156 crore a year earlier (-0.4%).
14Revenue CAGR (3 years)16.0%BullishRevenue compounded at 16.0% a year from FY23 to FY26.
15Profit CAGR (3 years)14.8%BullishNet profit compounded at 14.8% a year from FY23 to FY26.
16Revenue CAGR (5 years)16.0%BullishOver five years (FY21–FY26) revenue compounded at 16.0% a year.
17EPS growth FY26 (reported)+6.9%NeutralReported EPS went from ₹109.35 to ₹116.92 (+6.9%). Differences from profit growth come from changes in share count (bonus, buyback, new issues).

C. Profitability

#PointReadingTagCommentary
18Operating margin FY2613%NeutralOperating profit (EBITDA) was 13% of sales in FY26 versus 14% in FY25.
19Operating margin trend (4 quarters)13% → 13% → 13% → 13%NeutralQuarterly margins moved from 13% to 13% over the last four quarters — broadly stable.
20Net profit margin FY266.6%Neutral₹6.6 of every ₹100 of revenue ended up as net profit in FY26.
21Return on equity FY2618.3%BullishFY26 profit was 18.3% of average shareholders' equity. Above ~15% is generally considered good; below 10% weak.
22ROCE FY2615%NeutralReturn on capital employed (debt + equity) was 15% in FY26.
23Return on assets FY264.19%NeutralNet profit was 4.19% of total assets.
24Effective tax rate FY2626%NeutralThe company paid about 26% of pre-tax profit as tax; India's base corporate rate is ~25%.
25Other income share of pre-tax profit16%NeutralNon-operating 'other income' of ₹4,052 crore made up 16% of pre-tax profit.

D. Balance sheet

#PointReadingTagCommentary
26Debt / equity1.15BearishBorrowings of ₹1,25,497 crore were 1.15× equity — high leverage.
27Debt / EBITDA3.45×BearishDebt equalled 3.45 years of FY26 operating profit.
28Interest coverage3.6×NeutralEarnings before interest and tax covered interest cost 3.6 times.
29Book value growth+11.9%BullishShareholders' equity grew +11.9% from ₹97,656 crore to ₹1,09,290 crore in FY26.
30Capital work in progress₹3,311 cr (11% of fixed assets)NeutralProjects under construction (CWIP) were 11% of fixed assets — a modest pipeline.
31Working capital days-27 daysNeutralWorking capital tied up equalled -27 days of sales (FY25: -33). Negative means suppliers/customers fund operations.
32Cash conversion cycle-151 daysNeutralIt took -151 days to turn inventory and receivables into cash, net of supplier credit.
33Debtor days77 (FY25 77)NeutralCustomers took 77 days on average to pay, versus 77 a year earlier.

E. Cash flow

#PointReadingTagCommentary
34Operating cash flow FY26₹16,741 crBullishThe business generated ₹16,741 crore of operating cash in FY26 versus ₹9,151 crore in FY25.
35Free cash flow FY26₹12,272 crBullishAfter capital spending, free cash flow was ₹12,272 crore.
36Cash conversion (CFO ÷ net profit)0.88×NeutralOperating cash flow was 0.88× reported profit — reasonable cash backing.
37Free-cash-flow yield2.2%NeutralFY26 free cash flow was 2.2% of the snapshot market cap.
38Free cash flow — 3-year total₹31,939 crBullishFree cash flow over FY24–FY26 added up to ₹31,939 crore.
39Capex FY26 (CFO – FCF)₹4,469 crNeutralImplied capital expenditure was about ₹4,469 crore, 1.6% of sales.

F. Dividends & shareholder returns

#PointReadingTagCommentary
40Dividend payout ratio FY2632%NeutralThe company paid out about 32% of FY26 profit as dividends.
41Dividend consistency (3 years)36% / 31% / 32%BullishPayout ratios for FY24 / FY25 / FY26 — dividends were paid every year.
42Share capital change (FY25→FY26)+0.0%NeutralPaid-up equity capital changed +0.0% (₹275 cr → ₹275 cr). Essentially unchanged — no dilution.

G. Ownership

#PointReadingTagCommentary
43Promoter holdingNo promoter (widely held)NeutralThe company has no identified promoter group — ownership is spread among institutions and the public.
44Foreign institutional holding18.78% (-1.02 pts YoY)BearishFIIs held 18.78% at Mar 2026, down from 19.80% a year before.
45Domestic institutional holding43.32% (+0.61 pts YoY)NeutralMutual funds, insurers and other DIIs held 43.32%, up from 42.71%.
46Number of shareholders18.0 lakh (+5.6% YoY)NeutralThe shareholder count moved from 17.1 lakh to 18.0 lakh in a year — a rough gauge of retail interest.
47Promoter pledgenone reportedNeutralNot applicable — no promoter group.

H. Quality & summary

#PointReadingTagCommentary
48Financial health checklist (Piotroski-style, 8 tests)4/8BearishPassed: positive profit, positive operating cash flow, leverage fell, no meaningful dilution (<3%). Failed: CFO > net profit, operating margin improved, ROA improved, asset turnover improved.
49Automated screen flags1 strength(s) · 1 weakness(es)NeutralStrengths: Company has been maintaining a healthy dividend payout of 33.1%. Weaknesses: Stock is trading at 4.65 times its book value. (Flags generated by the data source’s rule screen.)
50Fundamental summary11 bullish · 6 bearish · 32 neutral · 0 cautionBullishOn the numbers published by 30 Jun 2026 the fundamental picture leaned positive. Valuation: P/E 30.1×, P/B 5.22×. This describes the data, not a recommendation.

News in the three months before the snapshot

Company news from 1 Apr – 30 Jun 2026 that an investor could have known on the snapshot date.

What happened next (30 Jun 2026 → 01 Oct 2026)

Later news

Educational summary. On 30 Jun 2026 the technical picture leaned positive and the fundamental picture leaned positive. Over the next three months the stock moved -10.9% against -6.0% for the Nifty 50. Here the chart's message did not line up neatly with what followed — a reminder that indicators describe the past, not the future. One case proves nothing on its own; the value is in seeing many cases over time. This page does not say whether to buy, sell or hold Larsen & Toubro today.

Sources: daily prices — Yahoo Finance history pages / equitypandit.com; financials and shareholding — Screener.in (fetched 03 Oct 2026); index — Nifty 50 via Yahoo Finance; news — linked articles. Calculations by Manage Our Finance. Report a correction

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