L&T Finance
Key Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹69,000+ Cr |
| Current Price | ~₹276 |
| P/E Ratio | 22.2 |
| Book Value | ₹111 |
| ROE | 11.8% |
| ROCE | 8.5% |
| Dividend Yield | 1.0% |
| 52-Week High / Low | ₹329 / ₹180 |
Source: Screener financial data.
Fundamental Strengths ✅
- Retail-focused NBFC with strong growth in consumer, rural, two-wheeler, housing and SME lending.
- Profit growth has been strong over the last five years.
- Quarterly revenue and profit continue to show an upward trend.
- Healthy dividend payout (~25% of profits).
- ROE improved from single digits a few years ago to around 12%.
Concerns ⚠️
- ROE is still lower than top-tier NBFCs such as Bajaj Finance.
- Interest coverage remains relatively weak, which is common among lending businesses but still worth monitoring.
- Valuation is no longer cheap after the strong rally from 2024 lows.
Earnings Trend
Revenue and profits have steadily increased:
- FY25 Net Profit: ~₹2,644 Cr
- FY26 quarterly profits continue to improve, with recent quarterly EPS reaching ₹3.78.
Technical View
- Long-term trend: Bullish
- Medium-term trend: Bullish
- Immediate resistance: ₹300–329
- Support zone: ₹250–260
- Strong support: ₹230–240
The stock remains above major moving averages and has outperformed many NBFC peers over the last year. Community discussions also highlight strong retail loan growth and improving asset quality, though investors are watching valuation levels closely.
Investment View
Bull Case
- Strong retail lending growth
- Improving profitability
- Digital transformation and cross-selling opportunities
- Potential re-rating if ROE moves toward 15%+
Bear Case
- Higher valuation than historical averages
- Sensitive to interest rates and credit quality
- NBFC sector faces regulatory and economic-cycle risks
Verdict
Fundamental Rating: 7.5/10
- Long-term investors: Positive outlook; accumulation on corrections may be preferable to chasing sharp rallies.
- Swing traders: Bullish above ₹250; a breakout above ₹300 could open the path toward the previous high near ₹329.
If you'd like, I can also provide a complete technical analysis with chart, support/resistance, RSI, MACD, and target levels for the next 1–3 months.
L&T Finance (LTF) – Snapshot
Quick View
- Trend: Bullish (long term)
- Support: ₹250–260
- Strong Support: ₹230–240
- Resistance: ₹300–329
- Fundamental Rating: 7.5/10
- Investment View: Positive for long-term investors; watch valuation and asset-quality trends.
L&T Finance continues to benefit from growth in retail lending, rural finance, housing loans, and SME financing, making it one of the stronger NBFCs in the mid-to-large-cap segment
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