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Today's prices ask more of ABB India than of Larsen & Toubro.
At current prices, buyers of ABB India are assuming about 35% growth against 18% in its own record; for Larsen & Toubro it is 6% against 16%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: ABB India on estimate withheld; Larsen & Toubro on estimate withheld.
- Size: Larsen & Toubro is worth about 3.8 times ABB India on the stock market.
- Record: On revenue the two have grown at much the same pace: ABB India compounded at about 10% a year (FY2018–FY2025) and Larsen & Toubro at about 11% (FY2018–FY2026).
- What to watch: industrial capex at ABB India; order inflow and backlog at Larsen & Toubro.
| ABB India | Larsen & Toubro | |
|---|---|---|
| Price | ₹7,054 | ₹4,144 |
| Market cap | ₹1.49L Cr | ₹5.70L Cr |
| P/E | 49.5 | 31.9 |
| P/B | 19.08 | 5.22 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Estimate withheld |
01Two businesses
The Indian arm of a Swiss engineering group
ABB India is majority-owned by Switzerland's ABB. It makes electrification products (switchgear, breakers), motion products (motors and drives), process automation systems and robotics for industry, utilities, railways and data centres.
Engineer, builder, IT house and lender
Larsen & Toubro is India's largest engineering and construction company. Its core business wins and delivers large projects — roads, metros, airports, water systems, power transmission, and oil and gas facilities in India and the Middle East. Its hi-tech manufacturing arm makes heavy equipment and defence systems.
02The records side by side
On revenue the two have grown at much the same pace: ABB India compounded at about 10% a year (FY2018–FY2025) and Larsen & Toubro at about 11% (FY2018–FY2026). By revenue, Larsen & Toubro is about 21.7 times the size of ABB India. ABB India kept 12.6% of revenue as net profit in FY2025; Larsen & Toubro kept 6.6% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: ABB India · Larsen & Toubro.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Industrial capexFactory and infrastructure investment drives orders.
- Data centresPower and cooling for data centres is a fast-growing market.
- Order inflow and backlogMost of L&T's revenue for the next few years is already in its order book. The size and margin of new orders set future earnings.
- Execution marginsConstruction margins are thin, so cost overruns or commodity swings move profit by much more than they move revenue.
05What could go wrong
- The premiumA high valuation leaves little room for slower orders.
- Capex cyclesPrivate investment can slow.
- A slowdown in public capexGovernment infrastructure spending is the biggest single source of domestic orders.
- Working capitalDelayed client payments tie up cash and can strain the balance sheet.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is ABB India or Larsen & Toubro better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, ABB India trades at 49.5 times earnings and 19.08 times book value, and Larsen & Toubro at 31.9 times earnings and 5.22 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between ABB India and Larsen & Toubro?
ABB India is majority-owned by Switzerland's ABB. Larsen & Toubro is India's largest engineering and construction company.
Are ABB India and Larsen & Toubro valued the same way?
No. ABB India is valued on estimate withheld and Larsen & Toubro on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for ABB India and Larsen & Toubro?
Worked backwards from the share price, ABB India needs about 35% growth and Larsen & Toubro about 6% growth, against 18% and 16% in their own records.