L&T Finance Ltd भारत की एक प्रमुख NBFC (Non-Banking Financial Company) है, जो retail और wholesale दोनों segments में financial products और services offer करती है।
Company ने Systemically Important Non-Deposit Accepting Core Investment Company (NBFC-CIC) के रूप में registration के लिए requisite application file कर दी है, जो इसके long-term structure को और मजबूत बनाती है।
यह blog investors और traders दोनों के लिए useful रहेगा, क्योंकि इसमें fundamental + growth + valuation + risk factors को detail में explain किया गया है।
Business Overview
L&T Finance का main focus रहा है:
Retail Lending
Rural & Farm Finance
Housing Finance
SME & Infrastructure Finance
Company धीरे-धीरे retail-heavy portfolio की तरफ shift कर रही है, जिससे risk diversification बेहतर होता है और earnings stability आती है। Key Financial Highlights
Parameter. Details
Market Cap ₹79,921 Cr
Current Price ₹319
52W High / Low. ₹329 / ₹129
Stock P/E. 29.6
Book Value ₹105
Dividend Yield 0.86%
ROCE. 8.71%
ROE. 10.8%
Face Value ₹10
L&T Finance Ltd share overview with important financial metrics including market cap, price, valuation ratios, ROE, ROCE, and dividend yield.
➡️ Valuation perspective से देखें तो stock premium pricing पर trade कर रहा है।
Growth Analysis – Compounded Performance
📈 Compounded Sales Growth
10 Years: 9%
5 Years: 2% (weak phase)
3 Years: 10%
TTM: 11%
👉 Recent years में sales growth recovery साफ दिखाई दे रही है।
📊 Compounded Profit Growth
10 Years: 13%
5 Years: 9%
3 Years: 45% 🔥
TTM: 5%
👉 3-year profit growth बहुत strong रहा है, indicating better operating efficiency.
💹 Stock Price CAGR
10 Years: 18%
5 Years: 27%
3 Years: 54%
1 Year: 129% 🚀
➡️ Price performance ने fundamentals से तेज run दिया है, जो future में consolidation risk बढ़ाता है।
Return Ratios – ROE Trend
L&T Finance Ltd ROE Trend: Last year ROE improves to 11% compared to long-term average returns
Period. ROE
10 Years. 9%
5 Years. 6%
3 Years. 7%
Last Year. 11%
👉 Long-term ROE अभी भी average zone में है, NBFC sector के top players से कम।
Dividend Strength – Income Investors के लिए
Dividend Payout Ratio: 27.8%
Dividend Yield: 0.86%
✔️ Company regular dividend देती रही है, जो stability को show करता है।
❌ Yield बहुत high नहीं है, growth-focused stock माना जाएगा।
👍 Pros (Positive Factors)
✔ Company has been maintaining a healthy dividend payout
✔ Strong brand backing of L&T Group
✔ Shift towards retail lending improves asset quality
✔ Strong stock price momentum in last 3 years
⚠️ Cons (Risk Factors)
❌ Stock trading at 3.03x Book Value (Expensive valuation)
❌ Low interest coverage ratio
❌ Sales growth weak over past 5 years (2.46%)
❌ ROE last 3 years only ~7.23%
❌ Possibility of interest cost capitalization
❌ High price run-up → downside risk if earnings disappoint
Valuation Analysis – Is L&T Finance Overvalued?
At P/E 29.6 and P/B 3+, L&T Finance is pricing in future growth expectations.
अगर profit growth sustain नहीं हुआ, तो valuation contraction देखने को मिल सकता है।
👉 Long-term investors को margin of safety के साथ entry plan करनी चाहिए।
Trading View (Short–Medium Term)
Stock ने 1 year में 129% return दिया है
Momentum strong है लेकिन near resistance ₹329
High volatility possible
📌 Swing traders: Strict stop loss जरूरी
📌 Positional traders: Pullback strategy better रहेगी
Long-Term Investment View (3–5 Years)
✔ Brand + scale advantage
✔ Retail focus = lower NPAs (if managed well)
❌ ROE improvement अभी भी challenge
👉 Verdict:
Conservative investors → Wait & Watch
Aggressive investors → Buy on deep corrections
Final Conclusion – L&T Finance Ltd Share Analysis
L&T Finance Ltd एक strong NBFC है, लेकिन current price पर stock fully valued दिखता है।
Company का future largely depend करेगा:
ROE improvement
Credit cost control
Retail portfolio execution
📌 “Great business ≠ Great price”
Entry price ही long-term return decide करती है।
