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L&T Finance Ltd
(LTF)
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Rating:63Neutral
Price Target:
₹277.00
▼(-13.30% Downside)
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
Profitability has improved materially, with strong 2026 operating and net margins after the 2023 operating loss. This indicates better pricing, credit performance, or cost control, creating a stronger earnings base that can support growth and reinvestment over the next several quarters.
Negative Factors
High leverage
The elevated debt-to-equity profile reduces financial flexibility and makes profitability more sensitive to funding costs. If borrowing becomes more expensive or asset quality weakens, higher leverage could pressure spreads, capital capacity, and the ability to sustain loan growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Profitability has improved materially, with strong 2026 operating and net margins after the 2023 operating loss. This indicates better pricing, credit performance, or cost control, creating a stronger earnings base that can support growth and reinvestment over the next several quarters.
Read all positive factors
L&T Finance Ltd (LTF) vs. iShares MSCI India ETF (INDA)
Market Cap
₹651.92B
Dividend Yield1.06%
Average Volume (3M)430.71K
Price to Earnings (P/E)20.6
Beta (1Y)1.78
Revenue Growth12.56%
EPS Growth19.25%
CountryIN
Employees41,301
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)12.71
Shares Outstanding2,506,401,900
10 Day Avg. Volume782,652
30 Day Avg. Volume430,708
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 Upside6.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)15.73
Revenue Forecast (FY)₹139.02B
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 | 50.28B | 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 Technical Analysis
Negative
319.50
Price Trends
302.83
Negative
298.71
Negative
290.71
Negative
Market Momentum
-13.55
Positive
28.06
Positive
9.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTF, the sentiment is Negative. The current price of 319.5 is above the 20-day moving average (MA) of 285.13, above the 50-day MA of 302.83, and above the 200-day MA of 290.71, indicating a bearish trend. The MACD of -13.55 indicates Positive momentum. The RSI at 28.06 is Positive, neither overbought nor oversold. The STOCH value of 9.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LTF.
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 | ₹2.21T | 16.60 | ― | 1.15% | 10.38% | 9.95% | |
66 Neutral | ₹5.97T | 29.39 | ― | 0.63% | 17.80% | 16.10% | |
63 Neutral | ₹651.92B | 20.55 | ― | 1.06% | 12.56% | 19.25% | |
63 Neutral | ₹1.35T | 23.41 | ― | 0.13% | 19.87% | 28.06% | |
59 Neutral | ₹457.34B | 20.42 | ― | 0.97% | 13.67% | 15.62% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹444.00B | 13.63 | ― | 3.67% | 13.60% | 30.32% |
* General Sector Average
IN:LTF
L&T Finance Ltd
260.10
-3.78
-1.43%
IN:BAJFINANCE
Bajaj Finance Limited
958.15
-72.77
-7.06%
IN:CHOLAFIN
Cholamandalam Investment and Finance Co. Ltd.
1,584.40
-58.47
-3.56%
IN:M&MFIN
Mahindra & Mahindra Financial Services Ltd.
319.55
41.65
14.99%
IN:SHRIRAMFIN
Shriram Finance Limited
941.00
276.38
41.59%
IN:SUNDARMFIN
Sundaram Finance Limited
4,116.30
-275.01
-6.26%
L&T Finance Ltd Corporate Events
L&T Finance Posts Robust Retail Growth in Q2 FY2026-27
Oct 3, 2026
LT Finance Limited reported strong growth in its retail operations for the quarter ended September 30, 2026, with estimated retail disbursements of about Rs. 24,000 crore, up roughly 27% year-on-year, driven by expansion in urban finance, SME fina...
L&T Finance Expands Equity Base With ESOP Share Allotment
Aug 28, 2026
LT Finance Limited has allotted 306,752 equity shares following the exercise of employee stock options granted under its 2013 Employee Stock Option Scheme. The newly issued shares will rank pari passu with existing equity shares in all respects, i...
L&T Finance Plans Investor and Analyst Meet in Mumbai
Aug 11, 2026
LT Finance Limited has scheduled an institutional investors and analyst meeting at the Motilal Oswal Conference in Mumbai on August 17, 2026, with both group and one-on-one interactions planned. The company emphasized that it will not share any un...
L&T Finance Names New Whole-Time Directors After RBI Approval
Aug 11, 2026
LT Finance Limited has announced the appointment of Mr. Sachinn Joshi and Mr. Raju Dodti as whole-time directors of the company, following the Reserve Bank of India’s approval dated August 10, 2026. Joshi has been appointed for a two-year te...
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.