LTF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | LTF | Market Cap | 70,064 Cr. | Current Price | 280 ₹ | High / Low | 329 ₹ |
| Stock P/E | 22.4 | Book Value | 111 ₹ | Dividend Yield | 0.98 % | ROCE | 8.49 % |
| ROE | 11.8 % | Face Value | 10.0 ₹ | DMA 50 | 278 ₹ | DMA 200 | 261 ₹ |
| Chg in FII Hold | 0.98 % | Chg in DII Hold | -0.42 % | PAT Qtr | 947 Cr. | PAT Prev Qtr | 751 Cr. |
| RSI | 51.1 | MACD | 4.94 | Volume | 39,00,471 | Avg Vol 1Wk | 74,88,352 |
| Low price | 156 ₹ | High price | 329 ₹ | PEG Ratio | 1.14 | Debt to equity | 3.96 |
| 52w Index | 71.3 % | Qtr Profit Var | 50.2 % | EPS | 12.4 ₹ | Industry PE | 18.2 |
Entry Zone: 270 ₹ – 285 ₹ (near 50 DMA support)
Exit Guidance: 310 ₹ – 320 ₹ (resistance zone)
Holding View: Suitable for medium to long-term holding with cautious monitoring of leverage
Positive
- EPS of 12.4 ₹ provides earnings base
- PEG ratio of 1.14 suggests fair valuation relative to growth
- Quarterly PAT growth (751 Cr → 947 Cr) shows strong operational momentum
- Dividend yield of 0.98% adds shareholder value
- FII holdings increased (+0.98%), signaling foreign investor confidence
- Stock trading above 200 DMA (261 ₹) supports long-term momentum
Limitation
- ROCE (8.49%) and ROE (11.8%) are modest compared to peers
- High debt-to-equity ratio (3.96) raises leverage concerns
- P/E of 22.4 compared to industry PE of 18.2 — valuation slightly stretched
- DII holdings decreased (-0.42%), showing reduced domestic institutional support
- Volume (39,00,471) below weekly average (74,88,352) indicates weaker participation
Company Negative News
- High leverage compared to peers may impact financial flexibility
- Decline in domestic institutional participation
Company Positive News
- Strong quarterly profit growth boosts investor sentiment
- Foreign institutional accumulation supports long-term confidence
- Technical indicators (RSI 51.1, MACD 4.94) show neutral to positive momentum
Industry
- Industry PE at 18.2, lower than LTF’s 22.4 — sector valuations more moderate
- Sector momentum strong with 52-week index return of 71.3%
Conclusion
L&T Finance Holdings demonstrates fair valuation on PEG basis and strong quarterly profit growth, supported by foreign institutional buying. However, modest ROE/ROCE, high debt levels, and reduced domestic participation limit upside potential. Entry near 270–285 ₹ offers a risk-managed opportunity, with exits around 310–320 ₹ advisable. Long-term holding is viable if profitability sustains and leverage improves, though valuation monitoring remains essential.
This block is structured for seamless integration into your modular HTML workflow reports. Would you like me to also prepare a technical momentum rating module (RSI, MACD, DMA classification) so you can overlay both perspectives in one unified template?