Should I buy Larsen & Toubro stock in 2025? Complete India Analysis

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At HelloSafe, our expert has been tracking the performance of Larsen & Toubro for over three years. Every month, over a million users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Larsen & Toubro.

What is Larsen & Toubro?

The price of Larsen & Toubro stock

The price of Larsen & Toubro stock is declining this week. Currently, the stock is trading at ₹3,582.90, reflecting a 24-hour change of -₹13.90 (-0.39%) and a weekly drop of 2.10%. The company’s market capitalization stands at ₹4,92,778 crores, with an average daily trading volume of 1,229,034 shares. Larsen & Toubro’s P/E ratio is 32.77, dividend yield is 0.95%, and the stock beta is a relatively low 0.46. Investors should note this lower volatility profile, which often appeals to those seeking stability in India’s infrastructure sector.

Our full analysis on Larsen & Toubro stock

After carefully evaluating Larsen & Toubro's recent financial results and examining its stock performance over the past three years, we have synthesized the insights of our proprietary models, blending key financial metrics, technical indicators, sectoral trends, and competitive benchmarks. By leveraging a multidimensional approach to analysis, we seek to identify pivotal patterns and hidden momentum drivers. So, why might Larsen & Toubro stock once again become a strategic entry point into the Indian infrastructure and technology sector in 2025?

Recent performance and market context

Larsen & Toubro (L&T) stands out in the Indian market with a current share price of ₹3,582.90 and a market capitalization of ₹4,92,778 crores, reflecting its leadership in the infrastructure and technology domains. Despite modest short-term softness—marked by a recent weekly decline of 2.10% and an intraday dip of 0.39%—the stock’s six-month gain of 4.76% signals underlying strength amid broader macroeconomic steadying. Highlighting positive developments, L&T recently declared a final dividend of ₹34 per share, underscoring sustained shareholder value. The company’s Q4 FY2025 financials exceeded analyst expectations, with quarterly net profits jumping 25% year-on-year to ₹5,497 crores and revenue swelling to ₹74,392 crores. These figures highlight operational excellence and an ability to outperform even in volatile market environments.

The macroeconomic context for L&T remains highly favorable: India is in the midst of an infrastructure supercycle, with government outlays and private sector demand accelerating across urbanization, energy, transportation, and digital infrastructure. L&T’s diversified expertise—spanning EPC, smart technologies, defense electronics, and renewable energy—positions it at the heart of this transformation. Policy initiatives such as “Make in India,” continued regulatory tailwinds, and robust government infrastructure allocations underpin strong multi-year sector momentum.

Technical analysis

Technically, Larsen & Toubro displays a compelling structure well suited for accumulation. The stock’s 14-day RSI sits at 47.49, right in the neutral zone and suggesting space for further upside without risk of overextension. The MACD is marginally negative (-6.50), yet daily, 50-day, 100-day, and 200-day moving averages all remain supportive, with the price holding above long-term trend lines (50d: ₹3,561.08; 100d: ₹3,419.90; 200d: ₹3,514.42). Such positioning points to robust medium-term momentum and a favorable trend, indicating buyers are stepping in near technical support zones.

Key structural supports are evident at ₹3,515 (pivot S3). Resistance at ₹3,662 marks the next technical objective, and a break above this could unlock fresh bullish potential. While mixed signals at shorter horizons may prompt some caution, the long-term technical context aligns with a bullish bias—smoothed volatility (ATR: 65.32) and moderate beta (0.46) suggest the price action is orderly, making the stock especially attractive for strategic accumulation on pullbacks.

Fundamental analysis

From a fundamental perspective, L&T’s growth story is deeply compelling. The company achieved a consolidated annual revenue of ₹2,55,734 crores in FY2025—a rise of 15.66% YoY—demonstrating material outperformance in a complex competitive environment. Net profits surged to ₹17,687 crores (+13.6% YoY), and EBITDA for Q4 reached an estimated ₹8,200 crores, translating to robust operating margins amid rising input costs.

Valuation remains balanced; with the current P/E ratio at 32.77, L&T trades at a justified premium given its market dominance, consistent double-digit earnings expansion, and sector-leading return on equity (ROE: 15.39%). Its nearly 1% dividend yield and increasing free cash generation signal an attractive risk-reward for both growth and income-oriented investors. Critically, L&T’s diversified structure, from mega-infrastructure projects to advanced technology and renewable energy divisions, lends it best-in-class resilience and upside optionality.

The company’s innovation engine fuels future capacity, whether through digital EPC, smart manufacturing, or complex defense contracts. Its international mix (46% of the order book from abroad) and balanced exposure across high-growth verticals—energy transition, heavy engineering, digital factories—further de-risk the earnings profile.

Volume and liquidity

Larsen & Toubro enjoys exceptional liquidity and strong institutional participation, indicative of enduring confidence from global and domestic investors. Average daily trading volume stands at 1,229,034 shares, with a 100% free float structure that encourages healthy price discovery and supports dynamic valuations. Institutional investors account for over 61% of the capital base, providing added stability and reinforcing L&T’s reputation as a defensive yet high-potential name in the NIFTY 50, SENSEX, and BSE 100 indices.

This substantial liquidity profile not only ensures efficient order execution for large and small investors alike, it also enables the stock to swiftly reflect fundamental and macro developments—a critical factor as capital inflows into India’s growth sectors continue to expand.

Catalysts and positive outlook

L&T’s future trajectory is underpinned by a powerful set of bullish catalysts:

• Record order book: At ₹5,79,137 crores as of March 2025 (up 22% YoY), L&T boasts both scale and visibility, with new project additions of ₹3,56,631 crores.
• Mega pipeline: With a ₹19 trillion project prospect pipeline for FY2026, revenue visibility extends well into the medium term.
• Renewables push: The new EPC Renewable business unit accelerates L&T’s role in the energy transition, opening up new markets and margin opportunities.
• Global expansion: About half of revenues now derive from the Middle East and other international geographies, reducing geographic risk and enhancing return potential.
• Governmental support: Union Budget priorities on infrastructure, energy, and smart tech create recurrent demand across L&T’s project base.
• ESG leadership: L&T’s focus on sustainable infrastructure and green contracts is increasingly attracting ESG-sensitive capital.
• Management excellence: S.N. Subrahmanyan’s proven leadership and innovation track record drive structurally sound and forward-looking strategic execution.

These drivers, bolstered by India’s infrastructure supercycle and an improving macro environment, create a context in which L&T is uniquely well-positioned to outperform.

Investment strategies

Given the multi-layered opportunity set, Larsen & Toubro suits a variety of investment strategies:

• Short-term positioning: The current technical setup suggests a potential entry near support levels (₹3,515-₹3,576), offering an attractive risk/reward profile ahead of anticipated quarterly updates and project announcements.
• Medium-term outlook: With robust earnings growth, dividend support, and a pipeline of new projects, investors may look to benefit from continued positive price momentum, particularly as macro indicators in India remain favorable and L&T launches new business initiatives.
• Long-term conviction: For investors seeking compounding growth and stable cash flows, L&T’s resilience, breadth across infrastructure and digital, and recurring project wins justify a buy-and-hold outlook. The company’s expansion in renewables and international markets suggest a multi-year re-rating is plausible, especially as it leverages leadership in design, digital solutions, and automated construction technologies.

In all cases, disciplined accumulation—particularly on dips or near technical supports—may provide an ideal entry point to exploit future uptrends, as the long-term structural thesis remains firmly intact.

Is it the right time to buy Larsen & Toubro?

All indicators suggest that Larsen & Toubro is entering a compelling phase of growth, offering a rare blend of scale, profitability, and strategic foresight. Strengths such as a record-high and diversified order book, double-digit earnings growth, robust dividend support, and an innovation-driven model underpin a strong case for renewed interest. Technical sentiment is constructive, fundamentals are sound, and exogenous drivers (infrastructure demand, energy transition, government support) point to opportunities for significant upside over both the short and long term.

In summary, while all stocks carry inherent risks, Larsen & Toubro seems to represent an excellent opportunity for investors seeking participation in India’s transformative infrastructure and technology evolution. The combination of strong financials, market leadership, and well-identified growth catalysts may well position L&T at the forefront of India’s economic resurgence for years to come. For investors with a disciplined approach, the stock offers a high-quality entry point into one of the country’s most dynamic sectors—and could potentially unlock significant value as new contracts, innovations, and sector tailwinds unfold.

How to Buy Larsen & Toubro Stock in India

Buying Larsen & Toubro stock online is simple and secure when using a regulated Indian broker. Investors have the choice between traditional cash buying (owning physical shares for the long term) and trading via CFDs (Contracts for Difference) to speculate on share price movements, often with leverage. Both options can be managed conveniently through your desktop or mobile, giving you access to real-time markets and secure settlements. For details on choosing the most suitable broker, you’ll find a comprehensive comparison further down the page.

Spot buying

Cash buying means purchasing Larsen & Toubro shares outright and becoming a direct shareholder. Typically, Indian brokers charge a flat commission per order, often between ₹20 and ₹25, in addition to nominal transaction taxes. This approach is ideal for those who want to hold shares long-term and benefit from dividends or capital appreciation.

Larsen & Toubro: Gain Scenario Example

If the Larsen & Toubro share price is ₹3,582.90, you can buy around 8 shares with a $1,000 stake, including a brokerage fee of around $5.

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Larsen & Toubro’s price movements without actually owning the underlying shares. Brokers typically charge a spread (the difference between buy/sell prices) and may apply overnight financing costs if you hold positions for more than a day. CFDs are popular for short-term trading and offer the ability to use leverage, but it’s important to manage risks carefully.

CFD Leverage Gain Scenario

You open a CFD position on Larsen & Toubro shares, with 5x leverage. This gives you a market exposure of $5,000. ✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before making any investment, it’s important to compare broker fees, trading platforms, and services—details are available in the broker comparison below. Your choice between spot buying and CFDs should match your investor profile and financial objectives, whether you prefer long-term ownership or more dynamic, leveraged strategies.

Our 7 tips for buying Larsen & Toubro stock

The latest news about Larsen & Toubro

Larsen & Toubro announced a record consolidated order book of ₹5,79,137 crores as of March 31, 2025. This marks a 22% year-on-year increase, demonstrating continued strong demand for its engineering and construction services across India and globally, which sets a positive trajectory for future revenue growth and sector confidence.

The company declared a final dividend of ₹34 per share after robust FY2025 results. This high payout, reflecting a 1,700% rate on face value, underscores Larsen & Toubro’s financial solidity and its commitment to shareholder returns, reinforcing investor sentiment on the Indian market.

Net profit for Q4 FY2025 rose by 25% year-on-year to ₹5,497 crores, exceeding analyst expectations. This outstanding bottom-line growth was driven by margin improvement and operational excellence across core segments, positively surprising market participants and validating the group's execution capabilities in complex projects.

Larsen & Toubro strengthened its renewable energy position by announcing a new EPC renewable division in India. This strategic move aligns with government initiatives for green infrastructure, broadening Larsen & Toubro’s domestic project pipeline and supporting long-term competitiveness in India’s evolving energy landscape.

Market consensus among Indian analysts remains highly favourable, with over 86% recommending a buy or outperform rating. This consensus reflects confidence in Larsen & Toubro’s diversified business model, healthy balance sheet, and sustained growth opportunities within India’s infrastructure development programmes.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.