L&T Finance share price: Buy L&T Finance Holdings, price target Rs 97 : ICICI Securities

ICICI Securities has a call to buy on L&T Finance Holdings with a target price of Rs 97. The current market price of L&T Finance Holdings Ltd. is Rs 73.05. The period given by the analyst is one year when the price of L&T Finance Holdings Ltd. can achieve the set goal.

L&T Finance Holdings Ltd., incorporated in 2008, is a large capitalization company (having a market capitalization of Rs 18034.79 Crore) operating in the NBFC sector.

The main products/revenue segments of L&T Finance Holdings Ltd. include dividends and interest for the year ending March 31, 2021.


For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 3099.12 Crore, down -1.13% from last quarter Total revenue of Rs 3134.46 Crore and down by -14.44% compared to the same quarter of last year Total revenue of Rs 3622.16 Crore. The company reported a net profit after tax of Rs 307.88 Crore last quarter.

Investment rationale
The company remains on the rapid commercialization of its portfolio (50% vs. 41% year-on-year) by i) reinforcing the expertise of existing products, ii) launching new products to capture adjacencies and new markets; and (iii) a customer-centric approach to cross-selling loan products. By maintaining NIM (including commission income) above 8% and operating cost + credit at 5.0-5.5%, he is targeting an ROA of 2.6-3.0% (before taxes) in the medium term. Keeping the target price at Rs97, given the roughly 14% correction in the shares over the past 3 months, the brokerage is upgrading it to ‘BUY’ from Add.

Promoter/Fii Holdings
The promoters held 63.5% of the company’s capital as of December 31, 2021, while the FIIs held 7.86% and the DIIs 6.11%.

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