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Today's prices ask more of Larsen & Toubro than of Mahindra & Mahindra.
At current prices, buyers of Larsen & Toubro are assuming about 6% growth against 16% in its own record; for Mahindra & Mahindra it is 0% against 20%. 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: Larsen & Toubro on estimate withheld; Mahindra & Mahindra on estimate withheld.
- Size: Larsen & Toubro is worth about 1.5 times Mahindra & Mahindra on the stock market.
- Record: On revenue the two have grown at much the same pace: Larsen & Toubro compounded at about 11% a year (FY2018–FY2026) and Mahindra & Mahindra at about 10% (FY2018–FY2026).
- What to watch: order inflow and backlog at Larsen & Toubro; suv volumes and margins at Mahindra & Mahindra.
| Larsen & Toubro | Mahindra & Mahindra | |
|---|---|---|
| Price | ₹4,144 | ₹3,333 |
| Market cap | ₹5.70L Cr | ₹3.73L Cr |
| P/E | 31.9 | 19.2 |
| P/B | 5.22 | 4.00 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Estimate withheld |
01Two businesses
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.
Tractors, SUVs and a group around them
Mahindra & Mahindra is India's largest tractor maker by volume and a leading maker of SUVs and light commercial vehicles — the Thar, Scorpio-N, XUV700 and XUV 3XO, and electric SUVs under the BE and XEV names. Its farm business also sells tractors abroad.
02The records side by side
On revenue the two have grown at much the same pace: Larsen & Toubro compounded at about 11% a year (FY2018–FY2026) and Mahindra & Mahindra at about 10% (FY2018–FY2026). By revenue, Larsen & Toubro is about 1.4 times the size of Mahindra & Mahindra. Larsen & Toubro kept 6.6% of revenue as net profit in FY2026; Mahindra & Mahindra kept 9.4% of revenue as net profit in FY2026. Larsen & Toubro was profitable in every year shown; Mahindra & Mahindra reported a net loss in FY2020.
Full ten-year tables and charts are on each company's page: Larsen & Toubro · Mahindra & Mahindra.
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
- 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.
- SUV volumes and marginsSUVs are where most of the recent profit growth has come from; holding waiting lists and pricing matters more than volume alone.
- The tractor cycleTractor demand follows the monsoon, crop prices and rural credit, so farm profits swing year to year.
05What could go wrong
- 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.
- A weak monsoonPoor rains hit tractor sales and rural lending at the same time.
- SUV competitionEvery major carmaker is now targeting the segment Mahindra leads.
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 Larsen & Toubro or Mahindra & Mahindra 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, Larsen & Toubro trades at 31.9 times earnings and 5.22 times book value, and Mahindra & Mahindra at 19.2 times earnings and 4.00 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 Larsen & Toubro and Mahindra & Mahindra?
Larsen & Toubro is India's largest engineering and construction company. Mahindra & Mahindra is India's largest tractor maker by volume and a leading maker of SUVs and light commercial vehicles — the Thar, Scorpio-N, XUV700 and XUV 3XO, and electric SUVs under the BE and XEV names.
Are Larsen & Toubro and Mahindra & Mahindra valued the same way?
No. Larsen & Toubro is valued on estimate withheld and Mahindra & Mahindra on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Larsen & Toubro and Mahindra & Mahindra?
Worked backwards from the share price, Larsen & Toubro needs about 6% growth and Mahindra & Mahindra about 0% growth, against 16% and 20% in their own records.