L&T Finance nears new high after 7 years; stock zooms 64% from January low

Business Standard

18 hours ago

L&T Finance share price today
Shares of L&T Finance (LTF) hit a multi-year high at ₹211.20, up 3 per cent on the BSE in Monday's intra-day trade. The stock price of the non-banking finance company (NBFC) was trading close to its record high of ₹213.60 touched on October 24, 2017.
The stock price of this L&T Group company has zoomed 64 per cent from its 52-week low of ₹ 129.15 hit on January 13, 2025. Thus far in the calendar year 2025, the stock has rallied 53 per cent, as against 6 per cent rise in the BSE Sensex. Catch Stock Market LIVE Updates: Sensex down 100 pts, Nifty flat
L&T Finance Q1 business update
As per quarterly business updates, LTF reported a 18% year-on-year (YoY) increase in its retail loan book to ₹99,800 crore in the quarter ended June 2025. The retail loan book of the company was ₹84,444 crore in the corresponding quarter last year. Retail disbursements grew 18 per cent YoY to ₹17,510 crore from ₹14,839 crore in Q1FY25. The company said its retailisation is estimated at 98 per cent in the first quarter of this fiscal, as compared to 95 per cent in the year-ago period.
LTF is amongst the leading financial institutions offering Farmer Finance, Rural Business Finance, Two-wheeler Finance, Personal Loans, Home Loans & Loan Against Property (LAP), and Business Loans.
L&T Finance - Outlook for FY26
Against the backdrop of a turbulent global environment, the Indian economy is expected to continue to demonstrate resilience in FY26 supported by robust sectoral performance and improving consumption trends. The RBI projects 6.5 per cent growth in India's real GDP in FY26 supported by strong momentum in domestic demand amid cooling food inflation, tax benefits and lower borrowing costs.
While prudently balancing fiscal consolidation and growth objectives, the Union Budget for FY26 has announced several measures under four engines of growth - agriculture, MSMEs, investment and exports. The tax cuts on individuals as announced in the Union Budget for FY26 are set to increase disposable income, boosting consumer spending and improving their loan eligibility which is expected to drive demand for credit. Furthermore, RBI's commitment to maintain sufficient systemic liquidity could expedite transmission of policy rate cuts and help the NBFC sector to reduce their overall cost of funds, LTF said in its FY25 annual report.
Mirae Asset Sharkhan view on L&T Finance
LTF remains assertive on reduction in credit cost and improvement in Asset quality in the micro finance institution (MFI) space from H2FY26. The MFIN Guardrails 2.0 will help build quality portfolios in the long term, and also has limited impact in the short term, analysts at Mirae Asset Sharekhan said.
LTF has guided for 20 per cent near-term loan growth, which may inch up to ~25 per cent gradually. It remains committed to its target profitability metrics - while NIMs would come off, opex improvements and lower credit costs will help to offset the impact.
The brokerage firm believes the stress in the unsecured segment is a near-term headwind, which the company will navigate and come out stronger. The company has already provided for most of the stress book through a combination of credit costs and excess balance sheet provisions. It remains assertive on reduction in credit costs and improvement in asset quality in the MFI space from H2FY26.
'We expect AUM/PAT CAGR of 22 per cent/24 per cent for FY25-27. Overall, RoA/RoE is expected to improve to 2.6 per cent/14 per cent in FY27. The stock trades at 1.7x/1.5x its FY2026E/FY2027E ABV,' analysts said. The brokerage firm reiterates a Buy rating on LTF with a revised price target of ₹240.