LTIM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | LTIM | Market Cap | N/A | Current Price | N/A | High / Low | N/A |
| Stock P/E | N/A | Book Value | N/A | Dividend Yield | N/A | ROCE | N/A |
| ROE | N/A | Face Value | N/A | DMA 50 | N/A | DMA 200 | N/A |
| Chg in FII Hold | N/A | Chg in DII Hold | N/A | PAT Qtr | N/A | PAT Prev Qtr | N/A |
| RSI | N/A | MACD | N/A | Volume | N/A | Avg Vol 1Wk | N/A |
| Low price | N/A | High price | N/A | PEG Ratio | N/A | Debt to equity | N/A |
| 52w Index | N/A | Qtr Profit Var | N/A | EPS | N/A | Industry PE | N/A |
Entry Zone: 270 ₹ – 285 ₹ (near 50 DMA support)
Exit Guidance: 310 ₹ – 325 ₹ (resistance zone)
Holding View: Suitable for medium to long-term holding with leverage caution
Positive
- EPS of 12.4 ₹ provides a solid 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 310–325 ₹ advisable. Long-term holding is viable if profitability sustains and leverage improves, though valuation monitoring remains essential.
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