⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
LTF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | LTF | Market Cap | 67,435 Cr. | Current Price | 269 ₹ | High / Low | 329 ₹ |
| Stock P/E | 24.1 | Book Value | 104 ₹ | Dividend Yield | 1.02 % | ROCE | 8.70 % |
| ROE | 10.8 % | Face Value | 10.0 ₹ | DMA 50 | 284 ₹ | DMA 200 | 257 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 1.00 % | PAT Qtr | 751 Cr. | PAT Prev Qtr | 728 Cr. |
| RSI | 42.8 | MACD | -7.78 | Volume | 64,77,228 | Avg Vol 1Wk | 45,50,019 |
| Low price | 140 ₹ | High price | 329 ₹ | PEG Ratio | 0.19 | Debt to equity | 3.76 |
| 52w Index | 68.2 % | Qtr Profit Var | 21.3 % | EPS | 11.1 ₹ | Industry PE | 17.2 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹728 Cr → ₹751 Cr), showing steady growth. EPS at ₹11.1 reflects moderate earnings capacity.
- Margins: ROE at 10.8% is modest, while ROCE at 8.7% highlights average efficiency.
- Debt: Debt-to-equity ratio of 3.76 indicates high leverage, typical for NBFCs but requiring careful monitoring.
- Cash Flow: Operating performance is stable, though leverage impacts flexibility.
💹 Valuation Indicators
- P/E: 24.1, above industry average (17.2), suggesting premium valuation.
- P/B: 2.58 (₹269 / ₹104), reflecting fair pricing relative to book value.
- PEG Ratio: 0.19, attractive as growth is undervalued compared to earnings.
- Intrinsic Value: Current price ₹269 is near fair value; better entry closer to ₹250–260.
🏢 Business Model & Competitive Advantage
- Strong presence in financial services and lending with diversified portfolio.
- Focus on retail and infrastructure financing supports consistent demand.
- High leverage is standard for NBFCs but requires prudent risk management.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹250–260 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to NBFC growth, though leverage and modest return ratios warrant caution.
✅ Positive
- Sequential PAT growth (+3.2%).
- PEG ratio (0.19) suggests undervaluation relative to growth.
- DII holdings increased by 1.00%, showing strong domestic institutional confidence.
- Dividend yield of 1.02% adds to shareholder returns.
⚠️ Limitation
- ROE (10.8%) and ROCE (8.7%) are modest compared to industry leaders.
- Debt-to-equity ratio of 3.76 indicates high leverage.
- High P/E (24.1) compared to industry average (17.2).
- Stock trading below DMA 50 (₹284) and near DMA 200 (₹257), showing weak momentum.
📉 Company Negative News
- FII holdings decreased by 0.26%, showing reduced foreign investor confidence.
- Technical indicators (RSI 42.8, MACD -7.78) suggest bearish momentum.
📈 Company Positive News
- Sequential PAT growth from ₹728 Cr to ₹751 Cr.
- DII holdings increased by 1.00%, reflecting strong domestic institutional support.
- Dividend yield of 1.02% supports investor returns.
🏭 Industry
- Industry P/E at 17.2, lower than company’s P/E (24.1), indicating premium valuation.
- NBFC sector remains resilient with strong demand for retail and infrastructure financing.
🔎 Conclusion
- L&T Finance demonstrates moderate fundamentals with steady earnings growth and strong institutional support.
- Valuation is premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹250–260 is favorable for long-term investors.
- Overall, a fundamentally stable NBFC with growth prospects, though short-term momentum weakness and high leverage warrant caution.