While there have been ups and downs in its stock price, its market capitalization is currently at ₹1.8 trillion, the exact same level as three years ago. Actually, things would have been far worse, but for the stellar performance of its IT services subsidiaries. Even after applying a conglomerate discount of 20%, the value of L&T’s stake in these firms now account for nearly 30% of its total market capitalization. L&T’s core engineering business has been the source of enormous value destruction for shareholders. After adjusting for the value of L&T’s stake in its subsidiaries, the residual value of the business has shrunk by 24%.

Source: Mint December 30, 2020 11:38 UTC