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L&T Finance Ltd (IN:LTF)
:LTF
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L&T Finance Ltd (LTF) AI Stock Analysis

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IN:LTF

L&T Finance Ltd

(LTF)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
₹274.00
▲(1.88% Upside)
L&T Finance Ltd's overall stock score is driven by strong financial performance in terms of revenue growth and profitability, but is hampered by high leverage and negative cash flows. The technical analysis indicates bullish momentum, though overbought conditions suggest caution. The valuation appears high, limiting potential upside.

L&T Finance Ltd (LTF) vs. iShares MSCI India ETF (INDA)

L&T Finance Ltd Business Overview & Revenue Model

Company DescriptionL&T Finance Limited, a non-banking financial company, engages in the provision of various financial products and services in India. It operates through Retail Finance, Wholesale Finance, Defocused Business, and Others segments. The Retail Finance segment provides farmer finance services, that includes farm equipment finance and agri allied finance; rural business finance services, such as micro finance loans and rural business loans; urban finance services, that includes two-wheeler finance, consumer loans, retail housing loans, and loans against property; SME loans; and retail portfolio acquisition services. The Wholesale Finance segment offers real estate finance and infrastructure finance services. The Defocused Business segment provides structured corporate loans and debt capital market services. The Others segment offers asset management services, etc. The company was formerly known as L&T Finance Holdings Limited and changed its name to L&T Finance Limited in March 2024. L&T Finance Limited was incorporated in 1994 and is headquartered in Mumbai, India. L&T Finance Limited operates as a subsidiary of Larsen & Toubro Limited.
How the Company Makes MoneyL&T Finance Ltd generates revenue primarily through interest income from its lending activities. The company earns money by providing loans to individuals and businesses, charging interest on these loans, which constitutes a significant portion of its revenue. Other key revenue streams include fees and commissions from asset management and investment products, as well as income from treasury operations. Significant partnerships with banks and financial institutions also enhance its ability to provide competitive financing solutions, while its focus on expanding its retail and wholesale lending portfolios further drives earnings. The company's diversified financial services allow it to mitigate risks and stabilize revenue through various economic cycles.

L&T Finance Ltd Financial Statement Overview

Summary
L&T Finance Ltd shows strong revenue growth and profitability with a healthy gross profit margin. However, it faces challenges with high leverage and negative cash flows, indicating potential liquidity issues and financial instability.
Income Statement
75
Positive
L&T Finance Ltd has shown strong revenue growth of 27.29% in the latest year, indicating a robust expansion. The gross profit margin is healthy at 61.72%, and the net profit margin stands at 16.88%, reflecting solid profitability. However, the EBIT and EBITDA margins have decreased compared to previous years, which could indicate rising operational costs or other inefficiencies.
Balance Sheet
65
Positive
The company has a high debt-to-equity ratio of 3.61, which suggests significant leverage and potential risk if interest rates rise or cash flows decrease. The return on equity is moderate at 10.34%, indicating efficient use of equity capital. The equity ratio is relatively low, reflecting a higher reliance on debt financing.
Cash Flow
40
Negative
L&T Finance Ltd faces challenges in cash flow management, with negative operating and free cash flows in the latest year. The free cash flow to net income ratio is slightly above 1, indicating that cash flows are not supporting net income effectively. The negative free cash flow growth rate is concerning and suggests potential liquidity issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue146.06B156.66B73.56B132.96B118.55B139.85B
Gross Profit98.15B96.69B138.91B59.41B117.17B138.25B
EBITDA25.07B73.95B74.91B0.000.000.00
Net Income26.59B26.44B23.20B16.23B10.70B9.71B
Balance Sheet
Total Assets0.001.20T1.03T1.06T1.07T1.09T
Cash, Cash Equivalents and Short-Term Investments0.00108.33B36.48B89.04B60.88B72.59B
Total Debt0.00923.72B766.03B831.05B848.51B885.88B
Total Liabilities-256.31B947.78B791.90B847.44B867.75B900.01B
Stockholders Equity256.31B255.64B234.38B215.28B199.48B187.73B
Cash Flow
Free Cash Flow0.00-167.82B5.67B65.90B60.01B54.12B
Operating Cash Flow0.00-165.86B6.86B67.18B60.75B54.64B
Investing Cash Flow0.004.71B8.49B-3.35B-50.84B-20.24B
Financing Cash Flow0.00154.19B-70.37B-16.64B-30.23B-20.91B

L&T Finance Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price268.95
Price Trends
50DMA
242.89
Positive
100DMA
221.69
Positive
200DMA
186.38
Positive
Market Momentum
MACD
7.50
Positive
RSI
65.56
Neutral
STOCH
55.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTF, the sentiment is Positive. The current price of 268.95 is above the 20-day moving average (MA) of 262.36, above the 50-day MA of 242.89, and above the 200-day MA of 186.38, indicating a bullish trend. The MACD of 7.50 indicates Positive momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 55.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LTF.

L&T Finance Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
₹1.01T10.882.19%11.31%37.17%
$18.00B11.429.92%3.81%9.73%1.22%
₹668.82B24.641.03%15.90%4.53%
₹236.96B29.621.09%4.83%-64.41%
₹315.46B5.681.71%4.57%15.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:LTF
L&T Finance Ltd
268.95
124.71
86.46%
IN:IDBI
IDBI Bank Limited
102.13
20.15
24.58%
IN:IOB
Indian Overseas Bank
40.56
-13.76
-25.33%
IN:LICHSGFIN
LIC Housing Finance Ltd
585.30
-37.29
-5.99%
IN:M&MFIN
Mahindra & Mahindra Financial Services Ltd.
299.90
39.82
15.31%
IN:MANAPPURAM
Manappuram Finance Limited
276.95
118.27
74.53%

L&T Finance Ltd Corporate Events

L&T Finance Schedules Investor Digital Day for November 2025
Oct 16, 2025

L&T Finance Limited has announced the schedule for its upcoming Investor Digital Day, set to take place on November 6, 2025, at the Jio World Convention Centre in Mumbai. This event will be held both in-person and virtually, with the virtual option specifically for overseas investors. This initiative reflects the company’s commitment to engaging with its investors and stakeholders, potentially enhancing its market presence and investor relations.

L&T Finance Reports Stable Financial Results for September 2025
Oct 15, 2025

L&T Finance Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025, following a board meeting. The results, which include consolidated and standalone figures, were approved by the Board of Directors and will be published in newspapers. The company also disclosed related party transactions and confirmed no deviation in the use of proceeds from non-convertible securities, indicating a stable financial position and adherence to regulatory requirements.

L&T Finance Achieves Record Profit and Growth in Q2FY26
Oct 15, 2025

L&T Finance Ltd reported its highest ever Profit After Tax (PAT) of Rs. 735 Crore for the quarter ended September 30, 2025, marking a 5% increase quarter-on-quarter and a 6% rise year-on-year. The company’s retail book crossed the Rs. 1 lakh Crore milestone, reflecting an 18% year-on-year growth. The quarter also saw the highest ever retail disbursements at Rs. 18,883 Crore, a 25% increase year-on-year. The company achieved an upgrade in its international issuer long-term credit ratings to ‘BBB/Stable’ by S&P Global Ratings and launched a partnership with Google Pay. These developments underscore L&T Finance’s strong business model and its strategic focus on technology and customer-centric growth, positioning it well in the competitive NBFC sector.

L&T Finance Limited Releases Investor Presentation
Oct 15, 2025

L&T Finance Limited has submitted an investor and analyst presentation to the National Stock Exchange of India and BSE Limited. This presentation, which is also available on the company’s website, is part of their compliance with SEBI’s Listing Obligations and Disclosure Requirements. The announcement highlights the company’s commitment to transparency and communication with its stakeholders, potentially impacting its market perception and investor relations positively.

L&T Finance Releases Unaudited Financial Results for September 2025
Oct 15, 2025

L&T Finance Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on October 15, 2025. The company has released consolidated and standalone financial results, along with a review report from statutory auditors, and confirmed no deviation in the utilization of issue proceeds of non-convertible securities. These disclosures are in compliance with SEBI regulations and reflect the company’s commitment to transparency and regulatory adherence, potentially impacting its market perception and stakeholder confidence.

L&T Finance Releases Q2 2025 Financial Results
Oct 15, 2025

L&T Finance Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025. The board meeting also covered disclosures related to related party transactions and the utilization of issue proceeds, indicating no deviation. This announcement reflects the company’s adherence to regulatory requirements and provides stakeholders with insights into its financial performance and operational transparency.

L&T Finance Allots Over 1.3 Million Shares Under ESOP
Oct 7, 2025

L&T Finance Limited has announced the allotment of 1,309,789 equity shares following the exercise of employee stock options under its 2013 scheme. This move is part of the company’s ongoing efforts to incentivize and retain talent, with the newly allotted shares set to rank equally with existing shares and eligible for future dividends.

L&T Finance Announces Senior Management Change
Oct 1, 2025

L&T Finance Limited announced a change in its senior management, with Mr. Santosh Parab, the General Counsel, superannuating from the company effective October 1, 2025. This change is part of the company’s regulatory disclosure obligations and reflects a significant transition in its leadership structure, potentially impacting its operational dynamics and stakeholder relationships.

L&T Finance Schedules September Investor Meetings
Sep 1, 2025

L&T Finance Limited has announced a schedule of meetings with institutional investors and analysts, set to take place in September 2025. These meetings, which include both in-person and virtual formats, aim to engage with investors without disclosing any unpublished price-sensitive information, thereby maintaining transparency and compliance with regulatory standards.

L&T Finance Credit Rating Upgraded by S&P Global Ratings
Aug 15, 2025

L&T Finance Limited announced that S&P Global Ratings has upgraded its credit ratings, reflecting improved financial stability and positive economic conditions in India. This upgrade signifies a stronger credit profile for L&T Finance, aligning with the overall positive outlook for Indian financial institutions amid favorable economic fundamentals and structural improvements in the financial system.

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.Date of analysis: Oct 02, 2025