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Today's prices ask more of UltraTech Cement than of Larsen & Toubro.
At current prices, buyers of Larsen & Toubro are assuming about 6% growth against 16% in its own record; for UltraTech Cement it is 19% 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; UltraTech Cement on discounted cash flow.
- Size: Larsen & Toubro is worth about 1.6 times UltraTech Cement 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 UltraTech Cement at about 13% (FY2019–FY2026).
- What to watch: order inflow and backlog at Larsen & Toubro; cement prices at UltraTech Cement.
| Larsen & Toubro | UltraTech Cement | |
|---|---|---|
| Price | ₹4,144 | ₹12,100 |
| Market cap | ₹5.70L Cr | ₹3.57L Cr |
| P/E | 31.9 | 40.5 |
| P/B | 5.22 | 4.65 |
| 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.
The biggest cement maker in India
UltraTech Cement, part of the Aditya Birla group through Grasim Industries, is India's largest cement producer, with plants and grinding units across the country and a capacity well ahead of its nearest rival. It also sells ready-mix concrete and building products, and has announced a move into cables and wires.
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 UltraTech Cement at about 13% (FY2019–FY2026). By revenue, Larsen & Toubro is about 3.2 times the size of UltraTech Cement. Larsen & Toubro kept 6.6% of revenue as net profit in FY2026; UltraTech Cement kept 9.3% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Larsen & Toubro · UltraTech Cement.
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.
- Cement pricesRealisation per tonne moves with regional demand and how disciplined producers are on price.
- Capacity utilisationPlants are expensive to build; running them closer to capacity lifts returns.
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 price warRapid expansion by the Adani group's cement companies could pressure prices.
- Construction slowdownsWeaker housing or government infrastructure spending cuts demand.
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 UltraTech Cement 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 UltraTech Cement at 40.5 times earnings and 4.65 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 UltraTech Cement?
Larsen & Toubro is India's largest engineering and construction company. UltraTech Cement, part of the Aditya Birla group through Grasim Industries, is India's largest cement producer, with plants and grinding units across the country and a capacity well ahead of its nearest rival.
Are Larsen & Toubro and UltraTech Cement valued the same way?
No. Larsen & Toubro is valued on estimate withheld and UltraTech Cement 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 UltraTech Cement?
Worked backwards from the share price, Larsen & Toubro needs about 6% growth and UltraTech Cement about 19% growth, against 16% and 14% in their own records.