L&T Finance Ltd (LTF) AI Stock Analysis

• Market Cap: ₹648.09B
• Dividend Yield: 1.08%
• Average Volume (3M): 306.26K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 1.81
• Revenue Growth: 18.60%
• EPS Growth: 7.17%
• Country: IN
• Employees: 30,534
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.80
• Shares Outstanding: 2,499,869,900
• 10 Day Avg. Volume: 277,293
• 30 Day Avg. Volume: 306,264
• PEG Ratio: 1.05
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 2.40
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹267.00
• Price Target Upside: 4.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: ₹274.00 ▲(7.20% 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 Business Overview & Revenue Model

Company Description

L&T Finance Ltd (LTF) is a diversified financial services company based in India, part of the L&T Group. The company operates in various sectors including retail finance, wholesale finance, and infrastructure finance. LTF provides a range of financial products and services such as loans for vehicles, home loans, personal loans, and financing for small and medium enterprises (SMEs). Additionally, the company offers investment solutions and asset management services, catering to both individual and institutional clients.

How the Company Makes Money

L&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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	146.06B	156.66B	73.56B	132.96B	118.55B	139.85B
Gross Profit	98.15B	96.69B	138.91B	59.41B	117.17B	138.25B
EBITDA	25.07B	73.95B	74.91B	0.00	0.00	0.00
Net Income	26.59B	26.44B	23.20B	16.23B	10.70B	9.71B
Balance Sheet
Total Assets	0.00	1.20T	1.03T	1.06T	1.07T	1.09T
Cash, Cash Equivalents and Short-Term Investments	0.00	108.33B	36.48B	89.04B	60.88B	72.59B
Total Debt	0.00	923.72B	766.03B	831.05B	848.51B	885.88B
Total Liabilities	-256.31B	947.78B	791.90B	847.44B	867.75B	900.01B
Stockholders Equity	256.31B	255.64B	234.38B	215.28B	199.48B	187.73B
Cash Flow
Free Cash Flow	0.00	-167.82B	5.67B	65.90B	60.01B	54.12B
Operating Cash Flow	0.00	-165.86B	6.86B	67.18B	60.75B	54.64B
Investing Cash Flow	0.00	4.71B	8.49B	-3.35B	-50.84B	-20.24B
Financing Cash Flow	0.00	154.19B	-70.37B	-16.64B	-30.23B	-20.91B

L&T Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 255.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 255.6 is above the 20-day moving average (MA) of 246.38, above the 50-day MA of 226.09, and above the 200-day MA of 177.97, indicating a bullish trend. The MACD of 8.96 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 79.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDBI	74 Outperform	₹992.66B	12.54	―	2.30%	16.28%	25.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LTF	62 Neutral	₹648.09B	24.32	―	1.08%	18.60%	7.17%
MANAPPURAM	56 Neutral	₹246.31B	30.79	―	1.02%	4.83%	-64.41%
LICHSGFIN	52 Neutral	₹311.64B	5.67	―	1.78%	4.57%	15.87%