L&T Finance Holdings Ltd Stock Analysis

BSE: 533519 | NSE: L&TFH | Finance - NBFC | Mid Cap

BSE Share Price Jan 24, 18:01
73.30 -2.25 (-2.98%)

DeciZen - Make an Informed Decision on L&T Finance Holdings

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is L&T Finance Holdings Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that L&T Finance Holdings Ltd is a average quality company.

2. Is L&T Finance Holdings Ltd undervalued or overvalued?

The key valuation ratios of L&T Finance Holdings Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is L&T Finance Holdings Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of L&T Finance Holdings Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of L&T Finance Holdings:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
L&T Finance Holdings Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Operating Income (₹ Cr.)2,9813,9435,0566,1967,2898,34110,21313,00414,10613,67812,574
YoY Gr. Rt. %-32.3%28.2%22.6%17.6%14.4%22.5%27.3%8.5%-3%-
Adj EPS (₹ ) 2.542.843.755.910.47.93.94
YoY Gr. Rt. %-59.9%-28.6%42.9%-9.2%35.5%17.9%77.1%-23.8%-50.2%-
BVPS (₹ )25.829.631.534.137.541.252.96267.375.278.7
YoY Gr. Rt. %-15%6.4%8.4%9.9%9.8%28.4%17.3%8.6%11.7%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)22.31.51.81.51.51.62.41.60.90

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Net Interest Income18.5%13.4%10.2%-3%
Adj EPS5.3%1.4%-12.4%-50.2%
BVPS12.7%14.9%12.5%11.7%
Share Price 5.1% -4.3% -16.9% -20.5%

Key Financial Ratios

RATIOS \ YEARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)15.318.511.813.711.712.512.517.212.16.97.9
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)11.914.310.51412.814.113.418.112.25.75.1

Recent Performance Summary

Total Income has increased 10.23 CAGR in last 3 years

Return on Equity has declined versus last 3 years average to 5.20%

Net Profit has declined -12.42 CAGR in last 3 years

Total income growth is poor in last 4 quarters

Latest Financials - L&T Finance Holdings Ltd.

Standalone Consolidated
TTM EPS (₹) 0.1 4
TTM Sales (₹ Cr.) 186 12,574
BVPS (₹.) 44.5 78.7
Reserves (₹ Cr.) 8,523 16,998
P/BV 1.70 0.96
PE 668.50 18.79
From the Market
52 Week Low / High (₹) 71.55 / 113.40
All Time Low / High (₹) 37.30 / 198.67
Market Cap (₹ Cr.) 18,691
Equity (₹ Cr.) 2,474
Face Value (₹) 10
Industry PE 40.4

Management X-Ray of L&T Finance Holdings :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About L&T Finance Holdings Ltd

L&T Finance Holdings was originally incorporated as L&T Capital Holdings Limited on May 1, 2008 under the Companies Act, as a public limited company, to carry on the business of investment/finance. The company received the certificate of commencement of business on May 15, 2008. The company subsequently changed the name to L&T Finance Holdings Limited pursuant to a special resolution passed by the shareholders at a general meeting dated September 1, 2010. Pursuant to the change of name, a fresh certificate of incorporation was granted to the company by the Registrar of Companies on September 6, 2010. The company was registered with the RBI under Section 45-IA of the Reserve Bank of India Act, 1934, as a non-banking financial institution. The company is promoted by Larsen & Toubro Limited, one of the leading companies in India, with interests in engineering, construction, electrical and electronics manufacturing and services, information technology and financial services, as a holding company for its financial services business.

Business area of the company

L&T Finance Holdings is one of India’s most valued and fastest-growing Non-Banking Financial Companies (NBFCs). The company offers a diverse range of financial products and services in rural, housing and infrastructure finance sectors. It also offers Investment management services.

Products offered by the company

  • Two wheeler Finance
  • Housing Finance
  • Farm equipment finance
  • Mutual fund
  • Infra finance
  • Real estate finance
  • Micro loans

Awards

  • 2015: Association of Renewable Energy Agencies of States (AREAS)- An MNRE Body Award for ‘Promoting renewable energy and contributing towards energy equity, energy accessibility and sustainability in the country’.
  • 2015: Achieved 6th position in Asian Private Banker League Table.
  • 2015: Middleware Excellence award for ‘Effective usage of Mobile Cloud Service’ at Oracle Open World, San Francisco.
  • 2016: Central Board of Irrigation & Power Awards (Govt. of India Organization) for ‘Best Finance Company in Renewable Energy at the annual’.
  • 2017: Golden Peacock Award for ‘Risk Management’.
  • 2017: Oracle Excellence Award for ‘Oracle Cloud Platform Innovation in Connect and Extend Applications with Mobile and Bots’.
  • 2017: RE - Finance Awards for ‘Best Renewable Energy Financier of the Year 2017 for both the Solar and Wind Sector’.
  • 2018: Golden Peacock Award for 'Excellence in Corporate Governance.
  • 2018: L&T Finance Holdings featured in the Forbes India's Super 50 Companies 2018
  • 2018: FINNOVITI 2018 Award for ‘SANGAM’, an Innovation in the two-wheeler business
  • 2020: The Asset Triple A Asia Infrastructure Awards 2020 for Renewable Energy Acquisition Financing Deal of the Year.
  • 2020: The Asset Triple A Asia Infrastructure Awards 2020 for Utility Deal of the Year
  • 2020: FICCI Corporate Social Responsibility Award for ‘Women Empowerment’
  • 2020: Golden Peacock Award for ‘Corporate Social Responsibility’
  • 2020: 10th India Digital Awards for its flagship CSR initiative - Digital Sakhi

Milestones

  • 2008- L&T Finance makes foray into Microfinance.
  • 2008- L&T Finance commence distribution of financial products.
  • 2008- L&T Finance starts financing of capital market products.
  • 2009-2010-  L&T Finance taps retail sources to raise funds for the first time - successful back-to-back NCD issuances.
  • 2010- L&T Finance acquires DBS Cholamandalam Asset Management Limited and DBS Cholamandalam Trustees Limited, foraying into mutual funds business L&T Infra receives 'Infrastructure Finance Company' status from RBI.
  • 2011- L&T Finance Holdings has successfully completed the acquisition of Indo Pacific Housing Finance Ltd (IPHF)L&T Finance Holdings Ltd acquires FamilyCredit Ltd. from Societe Generale Consumer FinanceL&T Finance acquires DBS Cholamandalam Asset Management Limited and DBS Cholamandalam Trustees Limited, foraying into the mutual funds business.
  • 2012- Acquisition of Fidelity's mutual fund business in IndiaEntry into 2-wheeler finance by acquiring family credit.
  • 2013- Incorporated L&T capital markets-A platform for wealth management.
  • 2013- L&T Finance Holdings has acquired auto finance company Family Credit Limited.
  • 2017- L&T Finance Holdings launches Micro Loans business in Assam.
  • 2017- L&T Finance Holdings launches Micro Loans business in Bihar.
  • 2018- Centrum Acquires L&T Finances Supply Chain Finance Business.
  • 2019- L&T Financial Services Launches Digital Sakhi in Tamil Nadu.
  • 2019- L&T Finance Launches Sabse Khaas Loan for Two-Wheeler Customers.
  • 2020- IIFL completes acquisition of L&T Finance's wealth management business.
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