On this page ▾
Today's prices ask more of JSW Steel than of Larsen & Toubro.
At current prices, buyers of JSW Steel are assuming about 16% growth against 9% 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: JSW Steel on discounted cash flow; Larsen & Toubro on estimate withheld.
- Size: Larsen & Toubro is worth about 1.4 times JSW Steel on the stock market.
- Record: On revenue the two have grown at much the same pace: JSW Steel compounded at about 13% a year (FY2018–FY2026) and Larsen & Toubro at about 11% (FY2018–FY2026).
- What to watch: steel spreads at JSW Steel; order inflow and backlog at Larsen & Toubro.
| JSW Steel | Larsen & Toubro | |
|---|---|---|
| Price | ₹1,348 | ₹4,144 |
| Market cap | ₹4.11L Cr | ₹5.70L Cr |
| P/E | 14.5 | 31.9 |
| P/B | 4.11 | 5.22 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Estimate withheld |
01Two businesses
One of India's two largest steelmakers
JSW Steel, the flagship of Sajjan Jindal's JSW group, is one of India's two largest steel producers. Its biggest plant is at Vijayanagar in Karnataka, with others at Dolvi in Maharashtra and in Odisha, Tamil Nadu and Chhattisgarh, and it bought Bhushan Power & Steel out of insolvency in 2021.
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: JSW Steel compounded at about 13% a year (FY2018–FY2026) and Larsen & Toubro at about 11% (FY2018–FY2026). By revenue, Larsen & Toubro is about 1.5 times the size of JSW Steel. JSW Steel kept 13.8% of revenue as net profit in FY2026; Larsen & Toubro kept 6.6% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: JSW Steel · 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
- Steel spreadsThe gap between steel prices and raw-material costs drives profit far more than volumes do.
- Capacity expansionJSW keeps adding capacity; returns on that capex decide long-term value.
- 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
- A downturn in steel pricesSteel profits can fall by half or more in a weak year.
- Coking coal costsMost coking coal is imported and its price is volatile.
- 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 JSW Steel 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, JSW Steel trades at 14.5 times earnings and 4.11 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 JSW Steel and Larsen & Toubro?
JSW Steel, the flagship of Sajjan Jindal's JSW group, is one of India's two largest steel producers. Larsen & Toubro is India's largest engineering and construction company.
Are JSW Steel and Larsen & Toubro valued the same way?
No. JSW Steel is valued on discounted cash flow 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 JSW Steel and Larsen & Toubro?
Worked backwards from the share price, JSW Steel needs about 16% growth and Larsen & Toubro about 6% growth, against 9% and 16% in their own records.