LTF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | LTF | Market Cap | 69,919 Cr. | Current Price | 279 ₹ | High / Low | 329 ₹ |
| Stock P/E | 24.9 | Book Value | 104 ₹ | Dividend Yield | 0.99 % | ROCE | 8.70 % |
| ROE | 10.8 % | Face Value | 10.0 ₹ | DMA 50 | 294 ₹ | DMA 200 | 248 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 1.00 % | PAT Qtr | 751 Cr. | PAT Prev Qtr | 728 Cr. |
| RSI | 35.8 | MACD | -5.15 | Volume | 27,33,817 | Avg Vol 1Wk | 40,58,023 |
| Low price | 131 ₹ | High price | 329 ₹ | PEG Ratio | 0.19 | Debt to equity | 3.76 |
| 52w Index | 74.6 % | Qtr Profit Var | 21.3 % | EPS | 11.1 ₹ | Industry PE | 18.9 |
📊 Financials: LTF demonstrates moderate fundamentals with ROE at 10.8% and ROCE at 8.70%, reflecting average capital efficiency. Debt-to-equity ratio of 3.76 indicates high leverage, typical for financial institutions, but requires monitoring. Quarterly PAT improved from 728 Cr. to 751 Cr. (+21.3%), showing earnings growth momentum. Cash flows remain stable, supported by lending operations and diversified financial services.
💹 Valuation: Current P/E of 24.9 is above industry average (18.9), suggesting premium valuation. P/B ratio (~2.7) is reasonable, while PEG ratio of 0.19 indicates attractive growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 265–275 ₹, offering margin of safety compared to current price (279 ₹).
🏢 Business Model & Advantage: LTF operates in financial services, focusing on lending, asset management, and retail financing. Its competitive advantage lies in scale, diversified portfolio, and strong institutional backing. Market cap of 69,919 Cr. positions it as a large-cap financial player with resilience and growth potential.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 265–275 ₹. Long-term investors may hold given strong institutional support and growth potential. Technical indicators (RSI 35.8, MACD negative) show near-term weakness, but fundamentals support long-term resilience.
Positive
- Quarterly PAT growth (+21.3%) highlights earnings momentum.
- PEG ratio of 0.19 indicates undervaluation relative to growth.
- DII holding increased (+1.00%) and FII holding increased (+0.26%), showing institutional confidence.
- Large-cap positioning with diversified financial services portfolio.
Limitation
- ROCE (8.70%) and ROE (10.8%) reflect modest efficiency.
- High debt-to-equity ratio (3.76) indicates leverage risk.
- P/E (24.9) above industry average (18.9) suggests premium valuation.
- Dividend yield of 0.99% is modest, limiting income appeal.
- Stock trading below DMA 50 (294 ₹) signals short-term weakness.
Company Negative News
- Weak technical indicators (RSI 35.8, MACD -5.15) show bearish momentum.
- Trading volumes lower than weekly average, indicating reduced liquidity.
Company Positive News
- Quarterly PAT growth from 728 Cr. to 751 Cr. highlights earnings resilience.
- Institutional inflows (FII +0.26%, DII +1.00%) reflect investor confidence.
Industry
- Industry P/E at 18.9 indicates moderate valuation levels.
- Financial services sector benefits from credit growth and retail demand.
- Companies with scale and diversified portfolios hold competitive advantage.
Conclusion
⚖️ LTF demonstrates moderate fundamentals with stable earnings growth, strong institutional support, and attractive PEG valuation. However, high leverage and premium P/E temper the outlook. Entry around 265–275 ₹ is recommended for long-term investors, with cautious monitoring of debt levels and technical trends.