Larsen and Toubro Ltd’s (L&T’s) shares trade at a price-to-book valuation that is even below levels during the peak of the 2008 global financial crisis, according to the estimates by Jefferies India Pvt. Ltd.
The infrastructure conglomerate’s shares have been underperforming the broad markets for a while now, but things have become worse recently.
Since February, the stock has fallen by 41%, far more than the 28% drop in the benchmark Nifty 50 index. Its price-book valuation is now around 1.5 times using one-year forward estimates of Jefferies India, against the low of 1.7 times during the 2008 financial crisis.
