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Business Standard
an hour ago
- Business
- Business Standard
L&T Finance hits new high after over 7 years; should you buy, hold or sell?
L&T Finance share price today Shares of L&T Finance (LTF) hit an all-time high of ₹214.80, up 2 per cent on the BSE in Wednesday's intra-day trade. The stock price of this non-banking finance company (NBFC) surpassed its previous high of ₹213.60 touched on October 24, 2017, the BSE data shows. In the past five months, LTF has zoomed 60 per cent. While, thus far in the calendar year, the stock has outperformed the market by surging 56 per cent, as compared to 5 per cent rise in the BSE Sensex. L&T Finance - Q1FY26 performance LTF reported a steady performance in the April to June 2025 quarter (Q1FY26) with visible recovery in rural portfolios. Retail disbursements stood at ₹17,522 crore (up 18 per cent YoY, 18 per cent QoQ), primarily led by integration of recently acquired gold loan portfolios. Retail book expanded 18 per cent YoY to ₹99,816 crore, while consolidated asset under management (AUM) increased 15 per cent YoY to ₹1.02 trillion. Asset quality metrics were stable with gross net performing asset (GNPA) at 2.93 per cent and net NPA at 0.83 per cent. Brokerages view, rating and target price for LTF According to analysts at ICICI Securities, relative resilience, amid volatility in the microfinance institution (MFI) segment, bodes well. Alteration in business mix, amid focus on sustainable and risk calibrated growth is expected to keep business growth steady and improve sustainability of performance. The brokerage firm revised target price to ₹250, valuing the stock at ~2x FY27E BV. Upgrade the stock from Hold to Buy. JM Financial Institutional Equities, Edelweiss Securities and Mirae Asset Sharekhan also have a 'Buy' rating on LTF with a target price of ₹240 per share. Current quarterly performance has been steady with moderating credit cost and improved growth visibility given its partnerships with Amazon and Phonepe. Its project Cyclops also offers significant support to the business in terms of underwriting, analysts at JM Financial Institutional Equities said. With a revival in growth and improving MFI outlook, we retain 'BUY'. Investment in a formidable digital platform shall ensure an accelerated shift to prime customers, which will help improve risk-adjusted yield by 50-100bp. LTF could dip into its remaining buffer of ₹ 275 crore even in Q2FY26. Credit Enhancement in MFI, especially Karnataka, will normalise by September/October, according to analysts at Edelweiss Securities. 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, said Mirae Asset Sharekhan in Q1 result update. Meanwhile, S&P Global Ratings expects L&T Finance's risk profile to improve, as the company shifts toward more diversified retail lending. Economic growth will also aid recovery of legacy wholesale and security receipt exposures. 'In our base case, L&T Finance will have strong retail loan growth of about 35 per cent for fiscal 2026 and 15 per cent for fiscal years 2027 and 2028. The company will also continue to shrink its wholesale loans. In addition, we expect yields to moderately decline over the forecast horizon as the company increases its secured lending portfolio,' the rating agency said in rationale. India's robust medium-term growth potential and large, diversified economy should continue to support NBFCs' business prospects and profitability in the medium term. Easing domestic interest rates, moderate inflation and improved system liquidity should buffer against global economic uncertainty, particularly as India's NBFCs are mostly domestically focused, said Fitch Ratings.
Business Standard
a day ago
- Business
- Business Standard
L&T Finance posts PAT of Rs 701 crore in Q1 FY26; retail disbursements up by 18% YoY
L&T Finance has reported 2% rise in consolidated net profit to Rs 701 crore on a 6% increase in total income to Rs 2,548 crore in Q1 FY26 as compared with Q1 FY25. Net interest income for the period under review was Rs 2,054 crore, up 2% YoY. Net interest margin was 8.24% in Q1 FY26 as against 9.31% in Q1 FY25. Earnings before credit cost rose by 4% to Rs 1,499 crore in Q1 FY26 from Rs 1,438 crore in Q1 FY25. Credit cost for the June25 quarter was Rs 556 crore, up 8% YoY. Profit before tax in Q1 FY26 stood at Rs 943 crore, up by 2% from Rs 923 crore posted in Q1 FY25. The quarterly retail disbursements increased by 18% to Rs 17,522 crore in Q1 FY26 from Rs 14,839 crore. This was led by farmer finance, home loan & loan against property (LAP), and gold loans in the secured assets space while unsecured asset growth was contributed by personal loans. The company's quarterly weighted average cost of borrowing (WACB) for Q1 FY26 was 7.68%, down 16 basis points (bps) on a quarter-on-quarter (QoQ) basis. Consolidated book size as on 30 June 2025 was at Rs 1,02,314 crore as against Rs 88,717 crore as on 30 June 2024, up 15% YoY. Retail book was at Rs 99,816 crore as on 30 June 2025, up 18% YoY. Gross Stage-3 (GS3) stood at 3.31% in Q1 FY26 as against 3.29% in Q4 FY25 and 3.14% in Q1 FY25. Net Stage 3 (NS3) stood at 0.99% in Q1 FY26 as against 0.79% in Q1 FY25 and 0.97% in Q4 FY25. Consolidated return on equity (RoE) stood at 10.86% as against 11.58% in Q1 FY25. Return on assets (RoA) stood at 2.37% as against 2.68% in Q1 FY25. Sudipta Roy, managing director & CEO, LTF said: "In a challenging quarter, our Company remained focused on outcomes and achieved a resilient performance while showcasing our ability to manage market headwinds. In the quarter, we achieved the highest-ever consolidated book of over Rs. 1 lakh crore milestone and added a secured high yield product to our loan portfolio i.e., gold loan. Our company has been assigned a debut investment grade credit rating of BBB-/Positive by S&P Global Ratings and BBB- /Stable by Fitch Ratings. This rating will serve as a foundation for further diversifying our liability franchise." L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities. The scrip fell 1.73% to currently trade at Rs 206.95 on the BSE.
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Business Standard
2 days ago
- Business
- Business Standard
BSE Midcap index in focus: L&T Fin, UPL at 52-week high, see stock strategy
Shares of midcap companies were in focus on Monday, with the BSE Midcap index outperforming the broader market in intra-day trade, driven by a rally of over 2 per cent in stocks such as L&T Finance, UPL, Jindal Stainless, Supreme Industries, and Ashok Leyland. As of 01:37 PM: BSE Midcap index, the top gainer among broader indices, was up 0.55 per cent, as compared to 0.38 per cent rise in the BSE Sensex and 0.09 per cent gain in the BSE Smallcap index. In the past month, BSE Midcap indeed has gained 3.3 per cent, as against a marginal 0.2 per cent rise in the BSE Sensex. However, the BSE Smallcap index has rallied 5 per cent during the period. Dalmia Bharat, Muthoot Finance, UPL, Vishal Mega Mart and L&T Finance from the BSE Midcap index have hit their respective 52-week highs in intra-day trade today. Stocks driving the rally Among the individual stocks, L&T Finance has surged 5 per cent to ₹212.75 after the non-banking finance company (NBFC) reported a steady performance in June 2025 quarter (Q1FY26) with visible recovery in rural portfolios. Business growth remained a tad slower, excluding acquired portfolio. Collection efficiency remained steady in rural finance, though management commentary is awaited on future trend, ICICI Securities said in a note. Shares of UPL hit a 52-week high of ₹712.75, soaring 4 per cent in intra-day trade. The stock price of pesticides & agrochemicals has rallied 12 per cent on a healthy business outlook. Looking ahead, domestic growth of crop protection market in FY26 is expected to gain momentum, driven by favourable monsoon forecasts, stable commodity prices, and robust sowing activity. On the export front, a recovery is projected in the second half of FY26, as international markets stabilise and inventory destocking by distribution channels nears completion. However, historically low realisations will continue to weigh on growth, preventing a return to the double-digit figures. This comes despite ongoing pricing pressures from oversupply in China, albeit less acute than last year. This trend is expected to persist, resulting in fewer inventory write-offs. Moreover, improved volumes should bolster the sector's profitability. Operating margins are also on a slow path to recovery. Controlled debt and a gradual rebound in operating profitability will help sustain stable debt-protection metrics over the near to medium term, UPL said in its FY25 annual report. Share price of Nippon Life India Asset Management (NAM India) was up 4 per cent to ₹871.1 in intra-day trade. In the past month, the stock has rallied 19 per cent. NAM India is a leading asset manager with a strong track record in India. The company provides a diverse range of investment products, including Mutual Funds, ETFs, Managed Accounts (including AIF and PMS), Offshore Business and GIFT City products, serving a wide base of investors. Given the low level of Mutual Fund penetration in India (only 4 per cent of India's population invests), there exists a vast growth opportunity going forward. This will be further amplified as India continues down its path to become the third largest economy in the world, which will see a gradual increase in Per Capita Income for the population (currently at only $2,500), NAM India said. Analysts at InCred Equities said they appreciate the overall healthy scheme-wise delivery by the industry, which, in turn, continues to attract equity asset under management (AUM). The brokerage firm believes the following key catalysts will continue to aid the inflow momentum - improving capital market sentiment and rising purchasing power, especially of the younger demographic segment, and falling interest rates. Healthy equity fund inflows are aiding the yield movement, and analysts expect overall yields to remain healthy in the medium term.
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Business Standard
2 days ago
- Business
- Business Standard
BSE Midcap index outperforms; L&T Finance, Muthoot, UPL hit 52-week highs
Shares of midcap companies were in focus on Monday, with the BSE Midcap index outperforming the broader market in intra-day trade, driven by a rally of over 2 per cent in stocks such as L&T Finance, UPL, Jindal Stainless, Supreme Industries, and Ashok Leyland. As of 01:37 PM: BSE Midcap index, the top gainer among broader indices, was up 0.55 per cent, as compared to 0.38 per cent rise in the BSE Sensex and 0.09 per cent gain in the BSE Smallcap index. In the past month, BSE Midcap indeed has gained 3.3 per cent, as against a marginal 0.2 per cent rise in the BSE Sensex. However, the BSE Smallcap index has rallied 5 per cent during the period. Dalmia Bharat, Muthoot Finance, UPL, Vishal Mega Mart and L&T Finance from the BSE Midcap index have hit their respective 52-week highs in intra-day trade today. Stocks driving the rally Among the individual stocks, L&T Finance has surged 5 per cent to ₹212.75 after the non-banking finance company (NBFC) reported a steady performance in June 2025 quarter (Q1FY26) with visible recovery in rural portfolios. Business growth remained a tad slower, excluding acquired portfolio. Collection efficiency remained steady in rural finance, though management commentary is awaited on future trend, ICICI Securities said in a note. Shares of UPL hit a 52-week high of ₹712.75, soaring 4 per cent in intra-day trade. The stock price of pesticides & agrochemicals has rallied 12 per cent on a healthy business outlook. Looking ahead, domestic growth of crop protection market in FY26 is expected to gain momentum, driven by favourable monsoon forecasts, stable commodity prices, and robust sowing activity. On the export front, a recovery is projected in the second half of FY26, as international markets stabilise and inventory destocking by distribution channels nears completion. However, historically low realisations will continue to weigh on growth, preventing a return to the double-digit figures. This comes despite ongoing pricing pressures from oversupply in China, albeit less acute than last year. This trend is expected to persist, resulting in fewer inventory write-offs. Moreover, improved volumes should bolster the sector's profitability. Operating margins are also on a slow path to recovery. Controlled debt and a gradual rebound in operating profitability will help sustain stable debt-protection metrics over the near to medium term, UPL said in its FY25 annual report. Share price of Nippon Life India Asset Management (NAM India) was up 4 per cent to ₹871.1 in intra-day trade. In the past month, the stock has rallied 19 per cent. NAM India is a leading asset manager with a strong track record in India. The company provides a diverse range of investment products, including Mutual Funds, ETFs, Managed Accounts (including AIF and PMS), Offshore Business and GIFT City products, serving a wide base of investors. Given the low level of Mutual Fund penetration in India (only 4 per cent of India's population invests), there exists a vast growth opportunity going forward. This will be further amplified as India continues down its path to become the third largest economy in the world, which will see a gradual increase in Per Capita Income for the population (currently at only $2,500), NAM India said. Analysts at InCred Equities said they appreciate the overall healthy scheme-wise delivery by the industry, which, in turn, continues to attract equity asset under management (AUM). The brokerage firm believes the following key catalysts will continue to aid the inflow momentum - improving capital market sentiment and rising purchasing power, especially of the younger demographic segment, and falling interest rates. Healthy equity fund inflows are aiding the yield movement, and analysts expect overall yields to remain healthy in the medium term.
Business Standard
4 days ago
- Business
- Business Standard
L&T Finance consolidated net profit rises 2.27% in the June 2025 quarter
Sales rise 12.56% to Rs 4259.57 croreNet profit of L&T Finance rose 2.27% to Rs 701.10 crore in the quarter ended June 2025 as against Rs 685.51 crore during the previous quarter ended June 2024. Sales rose 12.56% to Rs 4259.57 crore in the quarter ended June 2025 as against Rs 3784.40 crore during the previous quarter ended June EndedJun. 2025Jun. 2024% 13 OPM %61.5060.83 -PBDT983.91950.71 3 PBT943.22922.27 2 NP701.10685.51 2 Powered by Capital Market - Live News
