10-Year Investment Analysis: Larsen & Toubro Limited ROI, CAGR, and Dividend Earned

Investment Scenario
Let’s go back to 2015. Imagine an investor who invested ₹100,000.00 in Larsen & Toubro Limited (LT) company stock and held it steadily for 10 years . Instead of chasing short-term gains, the investor chose a long-term approach—holding the shares and reinvesting all dividends at the end of each year to purchase additional LT stock. This strategy, known as dividend reinvestment, allowed the investment to compound over time, not just through stock price appreciation but also through growing dividend payouts.

At the end of 2025, the ₹100,000.00 investment in NSE:LT would be worth approximately ₹540,000.00 due to stock splits and dividends that have been reinvested, which demonstrates a total Gain of 440,000.00 and a return on investment (ROI) of 440.00%, as well as an annualized compounded growth rate (CAGR) of around 18.37%. This illustrates the advantages of long-term investing, adhered to a disciplined reinvestment plan, and also illustrates how an initially small investment into a strong, fundamentally sound company (and move good company like Larsen & Toubro Limited) can create considerable wealth over the long run.

Wealth grew over time through a mix of dividend income and stock price appreciation. Dividends added to capital, while stock splits increased the number of shares held. Even without reinvesting dividends, the portfolio expanded steadily. As years passed, compounding took effect — turning small gains into larger ones. Holding the stock long-term allowed capital to grow naturally. This shows how patience, steady returns, and the power of compounding can help build lasting wealth from a single investment.

Larsen & Toubro Limited Investment Summary (2015–2025)

By 2025, the share price increased to ₹3600.00. This resulted in a significant appreciation in the value of the investment. 

 This performance reflects a Compound Annual Growth Rate (CAGR) of approximately 18.37% — a strong return over the period. 

Yearly Breakdown

Insights from the Market

LT is up 1.8% since the beginning of the year, trading between a 52-week low of 2,965.30 and a high of 3,963.50 per share. Investors who bought ₹100,000.00 worth of LT’s shares 10 years ago would now be looking at an investment worth ₹553,930.00.