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Today's prices ask more of Siemens India than of Larsen & Toubro.
At current prices, buyers of Larsen & Toubro are assuming about 6% growth against 16% in its own record; for Siemens India it is 35% against 14%. 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; Siemens India on discounted cash flow.
- Size: Larsen & Toubro is worth about 4.4 times Siemens India on the stock market.
- Record: Larsen & Toubro has grown revenue faster: Larsen & Toubro compounded at about 11% a year (FY2018–FY2026) and Siemens India at about 9% (FY2018–FY2026).
- What to watch: order inflow and backlog at Larsen & Toubro; industrial capex at Siemens India.
| Larsen & Toubro | Siemens India | |
|---|---|---|
| Price | ₹4,144 | ₹3,660 |
| Market cap | ₹5.70L Cr | ₹1.30L Cr |
| P/E | 31.9 | 47.4 |
| P/B | 5.22 | 9.41 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Discounted cash flow |
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.
Automation, rail and infrastructure
Siemens Ltd is the Indian listed arm of Germany's Siemens AG, which owns the majority. It sells factory-automation systems, electrical and building products, smart-grid equipment and rail technology, including locomotives and signalling.
02The records side by side
Larsen & Toubro has grown revenue faster: Larsen & Toubro compounded at about 11% a year (FY2018–FY2026) and Siemens India at about 9% (FY2018–FY2026). By revenue, Larsen & Toubro is about 11.5 times the size of Siemens India. Larsen & Toubro kept 6.6% of revenue as net profit in FY2026; Siemens India kept 11.1% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Larsen & Toubro · Siemens India.
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.
- Industrial capexFactory and infrastructure investment drives demand.
- Rail ordersLarge locomotive and signalling orders add long-term revenue.
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.
- Capex slowdownsWeaker private investment hits orders.
- Related-party pricingDealings with the parent affect margins.
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 Siemens India 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 Siemens India at 47.4 times earnings and 9.41 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 Siemens India?
Larsen & Toubro is India's largest engineering and construction company. Siemens Ltd is the Indian listed arm of Germany's Siemens AG, which owns the majority.
Are Larsen & Toubro and Siemens India valued the same way?
No. Larsen & Toubro is valued on estimate withheld and Siemens India on discounted cash flow, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Larsen & Toubro and Siemens India?
Worked backwards from the share price, Larsen & Toubro needs about 6% growth and Siemens India about 35% growth, against 16% and 14% in their own records.