L&T Finance
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
L&T Finance's recent strategic initiatives under the 'Lakshya 2031' framework highlight a strong commitment to becoming an AI-native lender, which is expected to enhance operational efficiency and improve profitability metrics. Management's focus on scaling the Gold Loan business and leveraging proprietary technology, such as the 'Canyon' Loan Origination System, positions the company well for revenue growth and margin expansion. Despite a cautious outlook regarding macroeconomic volatility and credit costs, the company's proactive measures in tightening credit guardrails and diversifying its retail portfolio are likely to support Vista's forecast of stable revenue growth and improving margins. The NBFC sector's favorable conditions, including increasing demand for gold-backed loans and supportive government policies, further bolster L&T Finance's growth prospects. Over the next 12-24 months, key opportunities include the successful migration to a private cloud infrastructure and the expansion of the retail distribution network. However, watchpoints include potential execution risks related to technological transitions and external economic pressures that could impact credit quality
Why We Like This Stock
- Management's transition to an AI-native lender is expected to enhance underwriting and operational efficiency
- The focus on scaling the Gold Loan business aligns with industry trends and supports revenue growth
- Proactive credit management and a diversified retail portfolio are likely to improve profitability metrics
Things To Watch Out For
- Execution risks related to technological transitions could impact operational efficiency
- Macroeconomic volatility and rising credit costs may challenge profitability metrics
- Potential regulatory scrutiny following past penalties could affect operational stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,865 | 9,917 | 11,194 | 12,140 | 14,634 |
| Profit Before Tax (Cr.) | 3,030 | 3,491 | 4,027 | 4,611 | 5,519 |
| PBT Margin | 34.2% | 35.2% | 3597.0% | 38.0% | 37.7% |
| Net Profit (Cr.) | 2,313 | 2,725 | 2,949 | 3,394 | 4,063 |
| Earnings Per Share | 9.2 | 10.9 | 11.8 | 13.6 | 16.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▲ Buy | 340 | 06-Jul-2026 |
| Elara Capital | ▲ Buy | 370 | 28-Apr-2026 |
| Emkay Global | ▲ Buy | 330 | 27-Apr-2026 |
| Geojit Financials | ► Add | 340 | 07-May-2026 |
| HDFC Securities | ► Add | 300 | 28-Apr-2026 |
| HSBC | ▲ Buy | 280 | 01-Apr-2026 |
| ICICI Securities | ▲ Buy | 370 | 12-Jul-2026 |
| JPMorgan | ▲ Buy | 320 | 13-Jul-2026 |
| Kotak Securities | ▼ Sell | 305 | 14-Jul-2026 |
| Morgan Stanley | ▼ Underweight | 185 | 13-Jul-2026 |
| Nomura | ▲ Buy | 370 | 13-Jul-2026 |
Company Overview
Show Company Profile
L&T Finance Limited, a non-banking financial company, provides various financial products and services in India. It offers housing loans; personal loans for medical emergencies, home renovation, wedding, vacation, education, and debt consolidation; two-wheeler loans; business loans, such as SME, doctor, chartered accountant, and professional loans, as well as supply chain financing solutions; rural loans comprising vikaas loans, vishwas loans, pragati loans, RLAP balance transfer, and micro loans against property; farmer loans, including new tractor loans, agri-implement loans, kisan suvidha top up, kisan suvidha top up plus, refinance loan, and warehouse receipt finance services; gold loans, such as sukhad loan, sampati loan, saraswati loan, safalta loan, sugam loan, and shubh loan; and loans against property. The company was formerly known as L&T Finance Holdings Limited and changed its name to L&T Finance Limited in March 2024. The company was incorporated in 1994 and is headquartered in Mumbai, India. L&T Finance Limited operates as a subsidiary of Larsen & Toubro Limited.