Larsen & Toubro vs BHEL: share price, P/E, ROE and financials compared
Larsen & Toubro
Bharat Heavy Electricals
Larsen & Toubro and BHEL at a glance
Larsen & Toubro is the larger by market cap, at ₹5.7L Cr against ₹1.5L Cr for BHEL (3.9 times as large). On valuation, Larsen & Toubro has the lower P/E (31.7× against 50.6×) and the lower price-to-book (5.01× against 5.45×). On returns and margins, Larsen & Toubro has the higher ROCE (14.6% against 6.6%) and the higher ROE (17.9% against 11.3%). Over three years, Larsen & Toubro has faster 3-year sales growth (+16.1% against +13.5% a year), while BHEL has faster 3-year profit growth (+35.9% against +15.4% a year). BHEL carries less debt for its equity, with a debt-to-equity of 0.22× against 1.05×.
Key metrics, side by side
| Metric | Larsen & ToubroLT | BHELBHEL |
|---|---|---|
| Price (₹) | 4,117.70 | 418.80 |
| Market cap (₹ Cr) | 5,66,549 | 1,45,829 |
| P/E | 31.7× (the lower figure, shaded) | 50.6× |
| P/B | 5.01× (the lower figure, shaded) | 5.45× |
| Dividend yield, trailing | 0.92% (the higher figure, shaded) | 0.33% |
| ROE | 17.9% (the higher figure, shaded) | 11.3% |
| ROCE | 14.6% (the higher figure, shaded) | 6.6% |
| Operating margin (OPM) | 9.6% | 10.1% |
| Net margin (NPM) | 5.8% | 7.6% (the higher figure, shaded) |
| Sales CAGR 3Y | +16.1% (the higher figure, shaded) | +13.5% |
| Profit CAGR 3Y | +15.4% | +35.9% (the higher figure, shaded) |
| Debt to equity | 1.05× | 0.22× (the lower figure, shaded) |
| Interest cover | 10.1× (the higher figure, shaded) | 3.8× |
| Net profit TTM (₹ Cr) | 17,866 | 2,879 |
| 1Y return | +3.2% | +56.4% (the higher figure, shaded) |
| Promoter holding | 0.00% | 58.17% |
Larsen & Toubro vs BHEL: common questions
Which is bigger, Larsen & Toubro or BHEL?
By market cap, Larsen & Toubro is bigger at ₹5.7L Cr, against ₹1.5L Cr for BHEL (prices as of 6 Nov 2026). Net profit over the last twelve months was ₹17,866 Cr for Larsen & Toubro and ₹2,879 Cr for BHEL.
Which has a lower P/E ratio, Larsen & Toubro or BHEL?
Larsen & Toubro trades at a P/E of 31.7× and BHEL at 50.6×. Larsen & Toubro has the lower P/E. P/E is the share price divided by earnings per share; it varies a lot between industries and with growth, so it says little on its own.
Which has a higher ROE, Larsen & Toubro or BHEL?
Larsen & Toubro reports a return on equity of 17.9% and BHEL 11.3%. Larsen & Toubro has the higher ROE. ROE is net profit as a share of shareholders’ equity.
Which is growing faster, Larsen & Toubro or BHEL?
Over the last three years: Sales grew +16.1% a year at Larsen & Toubro and +13.5% at BHEL, so Larsen & Toubro grew sales faster; profit grew +15.4% a year at Larsen & Toubro and +35.9% at BHEL, so BHEL grew profit faster. Past growth doesn’t predict future growth.