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L&T Finance Holdings Ltd. Stock Analysis

Mid Cap
Evaluated by 5396 users | BSE: 533519 | NSE: L&TFH |
Finance - NBFC
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...

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)2,0992,9813,9435,0566,1967,2898,34110,21313,00414,326
Y-o-Y Gr. Rt.-42%32.3%28.2%22.6%17.6%14.4%22.5%27.3%10.2%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
2.762.654.253.034.333.935.336.2911.148.48
Y-o-Y Gr. Rt.--4%60.4%-28.7%42.9%-9.2%35.6%18%77.1%-23.9%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
20.2627.6831.8233.8636.7140.3344.2756.8466.6772.38
Y-o-Y Gr. Rt.-36.6%15%6.4%8.4%9.9%9.8%28.4%17.3%8.6%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)2.451.962.31.471.751.471.541.622.351.6
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
L&T Finance Holdings Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income23.8%18.3%19.8%10.2%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
13.3%14.4%16.7%-23.9%
Book Value per Share
15.2%14.5%17.8%8.6%
Share Price 1.8% -2.7% -34.3% -41%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0000000000
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)0000000000
Margins
Net Profit Margin (%) 18.6915.2618.4911.7713.7311.7112.512.5117.1611.87
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 15.8811.9414.2810.5414.0212.7614.0513.3718.112.22
Entity Percentage Holding
Promoters 63.72%
Institutions 14.82%
Non-Institutions 21.46%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of L&T Finance Holdings and arrived at the following conclusion:

Past 10 year's financial track record indicates that L&T Finance Holdings is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of L&T Finance Holdings's performance infers:

L&T Finance Holdings earnings have grown by 14.4%, whereas share price has depreciated -2.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company

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

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 has applied to the RBI for registration as a systemically important CIC. 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.

The company a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries. It is headquartered in Mumbai, and has a presence in 21 states in India.  The company’s network of offices has been established to cater to the growing business needs of its diverse customer base, which includes individual retail customers as well as large companies, banks, multinational companies and small- and medium-enterprises, and to provide them with satisfactory customer service according to their varying requirements.

Business Divisions

Infrastructure Finance Group

The company’s wholly-owned subsidiary, L&T Infrastructure Finance Company Limited (L&T Infra), conducts its infrastructure finance business, which provides financial products and services to its customers engaged in infrastructure development and construction, with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India. L&T Infra is registered with the RBI as an NBFC-ND-SI and an IFC, which allows it to optimize its capital structure by diversifying its borrowings and accessing long-term funding resources, thereby expanding its financing operations while maintaining its competitive cost of funds.

Retail Finance Group and Corporate Finance Group

The company’s Retail Finance Group provides financing to its retail customers for the acquisition of income-generating assets and income-generating activities generally, and comprises the segments of construction equipment finance, transportation equipment finance, rural products finance and microfinance. In addition, its Retail Finance Group caters to the non-financing needs of its retail customers through the distribution of third party financial products such as insurance and mutual funds.

The company’s Corporate Finance Group provides financial products and services to its corporate customers, and comprises the segments of corporate loans and leases (in the form of asset-backed loans, term loans, receivables discounting, short-term working capital facilities and operating and finance leases), supply chain finance (which includes vendor and dealer finance products) and capital markets products.

Its wholly-owned subsidiary, L&T Finance Limited (L&T Finance), conducts its retail finance business and its corporate finance business. L&T Finance is registered with the RBI as an NBFC-ND-SI and an AFC.

Investment Management Group

The company’s wholly-owned indirect subsidiary (a wholly-owned subsidiary of L&T Finance) L&T Investment Management Limited (L&TIM), conducts its investment management business (Investment Management Group), which comprises the mutual fund segment (including the management, administration and distribution of L&T Mutual Fund) and the portfolio management services segment (including portfolio management and sub-advisory services). L&TIM (formerly DBS Cholamandalam Asset Management Limited) was acquired by L&T Finance on January 20, 2010, together with L&T Mutual Fund Trustee Limited (formerly DBS Cholamandalam Trustee Limited), the trustee company for L&T Mutual Fund.

Subsidiaries of the company

  • L&T Finance Limited
  • L&T Infrastructure Finance Company Limited
  • L&T Investment Management Limited
  • L&T Mutual Fund Trustee Limited
  • India Infrastructure Developers Limited

Milestones

  • 1994- L&T Finance was incorporated
  • 1994- L&T Finance commences business with focus on offering lease, hire purchase solutions for SMEs
  • 2004- L&T Finance starts financing of rural assets – tractors and farm equipments
  • 2006-2007- L&T Infra was incorporated in 2006 and received its certificate of registration from the RBI in 2007
  • 2006-2007- L&T Finance starts financing of commercial vehicles
  • 2008- L&T Finance makes foray into Microfinance
  • 2008- L&T Finance commences 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 Finance
    L&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 India
    Entry into 2-wheeler finance by acquiring family credit.
  • 2013
    Incorporated L&T capital markets-A platform for wealth management.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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