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L&T Finance Ltd
(LTF)
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Rating:63Neutral
Price Target:
₹340.00
▲(12.43% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving profitability but tempered by high leverage and volatile cash flow consistency. Technicals are supportive with a clear uptrend and positive momentum, while valuation is only average given a ~24.5 P/E and low dividend yield.
Positive Factors
Improved profitability and margins
Sustained operating and net margins around 23% and 17% signal structural improvement in pricing, credit performance and cost control. Higher margins support internal cash generation, build buffer for provisions and bolster long‑term return on equity, making earnings more resilient across cycles.
Negative Factors
High leverage
A debt‑to‑equity near 4x constrains balance sheet flexibility and magnifies earnings volatility if funding costs rise or asset quality weakens. Elevated leverage increases refinancing and regulatory risk for an NBFC, limiting capacity to absorb credit shocks and invest without raising new external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and margins
Sustained operating and net margins around 23% and 17% signal structural improvement in pricing, credit performance and cost control. Higher margins support internal cash generation, build buffer for provisions and bolster long‑term return on equity, making earnings more resilient across cycles.
Read all positive factors
L&T Finance Ltd (LTF) vs. iShares MSCI India ETF (INDA)
Market Cap
₹779.89B
Dividend Yield0.88%
Average Volume (3M)257.63K
Price to Earnings (P/E)24.5
Beta (1Y)1.79
Revenue Growth12.56%
EPS Growth19.25%
CountryIN
Employees41,301
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)12.71
Shares Outstanding2,505,660,200
10 Day Avg. Volume316,895
30 Day Avg. Volume257,629
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)2.15
Price to Sales (P/S)3.46
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹340.00Price Target Upside12.43% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)15.6
Revenue Forecast (FY)₹138.33B
L&T Finance Ltd Business Overview & Revenue Model
Company Description
L&T Finance Limited, an Indian non-banking financial company (NBFC), provides a comprehensive suite of financial products and services throughout the country. Its business operations are strategically divided into four primary segments: Retail Fin...
How the Company Makes Money
LTF primarily makes money by originating loans and earning interest income over the life of those loans. Its core revenue model is typical of an NBFC: it borrows funds (through instruments such as bank borrowings, market borrowings, and securitisa...
L&T Finance Ltd Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 182.41B | 173.55B | 156.66B | 132.36B | 123.19B | 113.44B |
| Gross Profit | 109.52B | 102.16B | 96.69B | 78.59B | 65.21B | 55.90B |
| EBITDA | 49.66B | 42.08B | 36.30B | 31.44B | -4.45B | 13.25B |
| Net Income | 31.83B | 29.81B | 26.44B | 23.20B | 16.23B | 10.70B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 1.42T | 1.20T | 1.03T | 1.06T | 1.07T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 79.59B | 108.33B | 36.48B | 89.04B | 60.88B |
| Total Debt | 0.00 | 1.10T | 923.72B | 766.03B | 831.05B | 848.51B |
| Total Liabilities | -280.34B | 1.14T | 947.78B | 791.90B | 847.44B | 867.75B |
| Stockholders Equity | 280.34B | 279.84B | 255.64B | 234.38B | 215.28B | 199.48B |
Cash Flow | ||||||
| Free Cash Flow | -42.20B | 107.26B | -167.82B | 5.67B | 65.90B | 60.01B |
| Operating Cash Flow | -41.41B | 109.66B | -165.86B | 6.86B | 67.18B | 60.75B |
| Investing Cash Flow | -2.51B | -248.06B | 4.71B | 8.49B | -3.35B | -50.84B |
| Financing Cash Flow | 36.07B | 154.33B | 154.19B | -70.37B | -16.64B | -30.23B |
L&T Finance Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹2.46T | 18.47 | ― | 1.07% | 10.38% | 9.95% | |
66 Neutral | ₹7.11T | 34.94 | ― | 0.59% | 17.80% | 16.10% | |
63 Neutral | ₹779.89B | 24.49 | ― | 0.91% | 12.56% | 19.25% | |
63 Neutral | ₹1.58T | 27.27 | ― | 0.12% | 19.87% | 28.06% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹536.31B | 16.46 | ― | 2.47% | 13.60% | 30.32% | |
55 Neutral | ₹517.93B | 19.26 | ― | 0.71% | 15.34% | 9.54% |
* General Sector Average
IN:LTF
L&T Finance Ltd
318.80
119.26
59.76%
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L&T Finance Ltd Corporate Events
L&T Finance files Q1FY27 investor presentation with stock exchanges
Jul 10, 2026
LT Finance Limited has submitted its latest investor and analyst presentation for Q1FY27 to the National Stock Exchange of India and BSE in compliance with SEBI’s Listing Regulations. The company has also made the presentation available on i...
L&T Finance Schedules Virtual Meets with Global Institutional Investors
Jun 3, 2026
LT Finance Limited has announced its participation in upcoming institutional investor and analyst interactions, underscoring its ongoing engagement with the global investment community. The company will attend the Nuvama India Conference 2026 (UK ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.