L&T Finance Holdings Ltd is a prominent non-banking financial company (NBFC) in India, offering a diverse range of financial products and services, including farm equipment finance, two-wheeler finance, microloans, consumer loans, home loans, loans against property, real estate finance, infrastructure finance, an infrastructure debt fund, and more. Registered as a Systemically Important Non-Deposit Accepting Core Investment Company (NBFC-CIC) with the Reserve Bank of India (RBI), it is a subsidiary of Larsen & Toubro Ltd (L&T), a renowned Indian multinational conglomerate with interests in engineering, construction, manufacturing, technology, information technology, and financial services. L&T is internationally recognized as one of the top five construction companies and boasts a vast portfolio of subsidiaries, joint ventures, and operations across various sectors as of March 2022.
In this article, we will comprehensively explore L&T Finance Holdings, covering their diverse financial services and global presence, providing an in-depth understanding of their significance in the Indian and international business arenas.
About L&T Finance Holdings
L&T Finance Holdings Ltd, a registered Systemically Important Non-Deposit Accepting Core Investment Company (NBFC-CIC) with the Reserve Bank of India, is a subsidiary of Larsen & Toubro, holding a 63.5% stake. The company boasts a diverse portfolio, including farm equipment, two-wheeler, micro, and consumer loans, along with housing and infrastructure finance. L&T Finance’s robust infrastructure comprises 197 branches, and 1,395 Micro Loan centers, catering to a customer base of over 111 lahks, and an employee base of 22,532 as of FY21.
In addition to its lending business, the company engages in non-lending activities such as Mutual Fund services, experiencing significant growth in Assets Under Management (AUM). The sale of its Asset Management business to HSBC Asset Management for USD 425 million further underlines its strategic business decisions. With a strong financial position reflected in key ratios like a consolidated CRAR ratio of 24.07%, L&T Finance remains a prominent player in the financial services sector.
L&T Finance Holdings Q3 2023-24 Financial Summary
- Profit Surge: Consolidated net profit sees a significant 41.12% rise, reaching Rs 640.18 crore.
- Sequential Boost: Net profit grows by 7.6% sequentially, indicating sustained positive momentum.
- Performance Strength: The impressive results are attributed to robust business performance, driven by strong Net Interest Margins (NIMs) plus Fees (Consolidated).
- Retail Milestones: Achieved the highest-ever quarterly retail disbursements at Rs 14,531 crore, showing a noteworthy 25% YoY increase.
- Retail Portfolio Expansion: The Retail Book expands by 31% YoY, reaching Rs 74,759 crore.
- Overall Disbursement Growth: Total disbursements grow by 13% YoY to Rs 14,865 crore in Q3FY24.
- Loan Portfolio Composition: Retail Book constitutes a substantial 91% of the total loan book.
Below are the trading platforms that you can use to purchase L&T Finance shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| April 2024 | 166.10 | 144.43 |
| May 2024 | 163.65 | 142.30 |
| June 2024 | 169.54 | 147.42 |
| July 2024 | 167.84 | 145.95 |
| August 2024 | 174.55 | 151.79 |
| September 2024 | 181.54 | 157.86 |
| October 2024 | 177.98 | 154.76 |
| November 2024 | 185.10 | 160.95 |
| December 2024 | 186.95 | 162.56 |
In April 2024, L&T Finance Holdings is projected to witness a maximum price of 166.10 and a minimum price of 144.43. As the year progresses, both the maximum and minimum prices of L&T Finance Holdings are expected to fluctuate, with November 2024 anticipated to see the highest maximum price of 185.10 and December 2024 likely to witness a minimum price of 162.56. These projections suggest potential market dynamics and fluctuations in L&T Finance Holdings’ pricing throughout the year.
| When | Maximum Price | Minimum Price |
| January 2025 | 187.13 | 143.95 |
| February 2025 | 187.51 | 144.24 |
| March 2025 | 191.45 | 147.27 |
| April 2025 | 187.69 | 144.38 |
| May 2025 | 182.23 | 140.17 |
| June 2025 | 190.43 | 146.48 |
| July 2025 | 186.69 | 143.61 |
| August 2025 | 192.47 | 148.05 |
| September 2025 | 194.78 | 149.83 |
| October 2025 | 199.84 | 153.72 |
| November 2025 | 204.84 | 157.57 |
| December 2025 | 214.05 | 164.66 |
Throughout 2025, L&T Finance Holdings is projected to experience fluctuations in its maximum and minimum prices. Starting from January with a maximum of 187.13 and a minimum of 143.95, the prices are expected to vary each month. By December, the maximum price could peak at 214.05, while the minimum might stabilize around 164.66. These fluctuations reflect the evolving market dynamics and investor sentiments impacting L&T Finance Holdings throughout the year.
| When | Maximum Price | Minimum Price |
| January 2026 | 257.45 | 198.04 |
| February 2026 | 264.05 | 203.11 |
| March 2026 | 274.35 | 211.04 |
| April 2026 | 268.97 | 206.90 |
| May 2026 | 261.13 | 200.87 |
| June 2026 | 272.88 | 209.91 |
| July 2026 | 267.53 | 205.80 |
| August 2026 | 275.81 | 212.16 |
| September 2026 | 285.46 | 219.59 |
| October 2026 | 292.88 | 225.30 |
| November 2026 | 300.21 | 230.93 |
| December 2026 | 307.71 | 236.70 |
| When | Maximum Price | Minimum Price |
| January 2027 | 313.87 | 241.43 |
| February 2027 | 321.91 | 247.63 |
| March 2027 | 334.47 | 257.28 |
| April 2027 | 327.91 | 252.24 |
| May 2027 | 318.36 | 244.89 |
| June 2027 | 332.68 | 255.91 |
| July 2027 | 326.16 | 250.89 |
| August 2027 | 336.25 | 258.65 |
| September 2027 | 348.02 | 267.71 |
| October 2027 | 357.07 | 274.67 |
| November 2027 | 365.99 | 281.53 |
| December 2027 | 375.14 | 288.57 |
| When | Maximum Price | Minimum Price |
| January 2028 | 382.65 | 294.34 |
| February 2028 | 392.46 | 301.89 |
| March 2028 | 407.76 | 313.66 |
| April 2028 | 399.77 | 307.51 |
| May 2028 | 388.12 | 298.56 |
| June 2028 | 405.59 | 311.99 |
| July 2028 | 397.64 | 305.87 |
| August 2028 | 409.93 | 315.33 |
| September 2028 | 424.28 | 326.37 |
| October 2028 | 435.31 | 334.86 |
| November 2028 | 446.20 | 343.23 |
| December 2028 | 457.35 | 351.81 |
| When | Maximum Price | Minimum Price |
| January 2029 | 466.50 | 358.85 |
| February 2029 | 478.46 | 368.05 |
| March 2029 | 497.12 | 382.40 |
| April 2029 | 487.37 | 374.90 |
| May 2029 | 473.18 | 363.98 |
| June 2029 | 494.47 | 380.36 |
| July 2029 | 484.77 | 372.90 |
| August 2029 | 499.77 | 384.44 |
| September 2029 | 517.26 | 397.89 |
| October 2029 | 530.71 | 408.24 |
| November 2029 | 543.98 | 418.44 |
| December 2029 | 557.58 | 428.90 |
| When | Maximum Price | Minimum Price |
| January 2030 | 568.73 | 437.48 |
| February 2030 | 583.31 | 448.70 |
| March 2030 | 606.06 | 466.20 |
| April 2030 | 594.18 | 457.06 |
| May 2030 | 576.87 | 443.75 |
| June 2030 | 602.83 | 463.71 |
| July 2030 | 591.01 | 454.62 |
| August 2030 | 609.29 | 468.68 |
| September 2030 | 630.61 | 485.09 |
| October 2030 | 647.01 | 497.70 |
| November 2030 | 663.18 | 510.14 |
| December 2030 | 679.76 | 522.89 |
In January 2030, L&T Finance Holdings is expected to see its maximum price reach 568.73 and its minimum price settle at 437.48. As the year progresses, both the maximum and minimum prices of L&T Finance Holdings are projected to increase steadily, with December 2030 likely witnessing the highest maximum price of 679.76 and the minimum price stabilizing around 522.89. These forecasts indicate a positive trend in L&T Finance Holdings’ pricing throughout the year, reflecting potential market dynamics and investor confidence.
Financial Condition Of L&T Finance Holdings: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 13,365 | 14,104 | 13,353 | 11,930 | 12,775 |
| Expenses (Rs. Crores) | 3,377 | 4,160 | 5,401 | 5,233 | 5,248 |
| Operating Profit (Rs. Crores) | 9,988 | 9,944 | 7,952 | 6,697 | 7,527 |
| OPM (%) | 75% | 70% | 60% | 56% | 59% |
| Other Income (Rs. Crores) | -4 | 370 | 836 | 594 | 105 |
| Interest (Rs. Crores) | 6,882 | 7,552 | 7,230 | 5,765 | 5,812 |
| Depreciation (Rs. Crores) | 50 | 82 | 86 | 103 | 111 |
| Profit Before Tax (Rs. Crores) | 3,052 | 2,680 | 1,472 | 1,423 | 1,709 |
| Tax (%) | 27% | 37% | 36% | 26% | 10% |
| Net Profit (Rs. Crores) | 2,232 | 1,700 | 949 | 1,049 | 1,536 |
| EPS (Rs.) | 9.06 | 6.90 | 3.93 | 4.33 | 6.55 |
| Dividend Payout (%) | 9% | 11% | 0% | 12% | 31% |
Over the past five years, L&T Finance Holdings has navigated a dynamic financial landscape, with notable shifts in key performance indicators. In 2019, the company reported sales of Rs. 13,365 crores, which saw a slight increase in 2020 to Rs. 14,104 crores. However, 2021 marked a decline to Rs. 13,353 crores, reflecting a fluctuating revenue trend. These revenue fluctuations were accompanied by variations in expenses, which saw a significant increase from Rs. 3,377 crore in 2019 to Rs. 5,401 crore in 2021, emphasizing the importance of cost management.
Operating Profit Margin (OPM) experienced shifts as well, starting at a robust 75% in 2019, gradually declining to 56% in 2022, and rebounding to 59% in 2023. This indicates the company’s efforts to maintain profitability despite challenges. Notably, dividend payouts surged from 9% in 2019 to 31% in 2023, signaling a commitment to rewarding shareholders. While there were fluctuations in tax rates and net profits over the years, the company’s ability to adapt and recover demonstrates its resilience in the face of changing economic conditions. These financial insights provide a comprehensive view of L&T Finance Holdings’ evolving financial condition over the last five years.
FAQs
What is L&T Finance Holdings’ current market capitalization?
As of 30th March 2024, L&T Finance Holdings’ current market capitalization is ₹39,387 crores.
What is the current share price of L&T Finance Holdings?
As of 30th March 2024, the current share price of L&T Finance Holdings is ₹158.
What is the high and low range of L&T Finance Holdings’ stock price?
The high and low range of L&T Finance Holdings’ stock price is ₹179 and ₹82.3, respectively.
What is the stock’s Price-to-Earnings (P/E) ratio?
The stock’s P/E ratio is 18.1.
What is the current dividend yield for L&T Finance Holdings?
The current dividend yield for L&T Finance Holdings is 1.26 %.
What were L&T Finance Holdings’ sales figures for the last five years?
L&T Finance Holdings’ sales over the past five years exhibited the following figures: ₹13,365 crores in 2019, ₹14,104 crores in 2020, ₹13,353 crores in 2021, ₹11,930 crores in 2022, and ₹12,775 crores in 2023.
How have L&T Finance Holdings’ expenses evolved in the past five years?
L&T Finance Holdings’ expenses increased from ₹3,377 crores in 2019 to ₹5,401 crores in 2021, then slightly decreased to ₹5,233 crores in 2022, and remained at ₹5,248 crores in 2023.
What is the trend in L&T Finance Holdings’ operating profit margin (OPM) over the years?
L&T Finance Holdings’ Operating Profit Margin (OPM) showed a progression of 75% in 2019, 70% in 2020, 60% in 2021, 56% in 2022, and a rebound to 59% in 2023.
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In conclusion, L&T Finance Holdings Ltd stands as a significant player in India’s non-banking financial sector, offering an extensive range of financial products and services to a diverse clientele. As a subsidiary of Larsen & Toubro Ltd (L&T), a prominent multinational conglomerate, it benefits from L&T’s broad expertise and global presence.
L&T Finance Holdings’ performance is a dynamic journey, as reflected in its financial figures from 2019 to 2023. The company navigated fluctuations in sales and expenses, demonstrating its adaptability and cost management strategies. Operating Profit Margin (OPM) experienced ups and downs but showed resilience in the face of economic challenges. A notable increase in dividend payouts underscored the company’s commitment to shareholder value.
Projections for the coming years suggest a potentially positive outlook for L&T Finance Holdings’ share price, indicating growth and optimism among investors. The company’s consistent market capitalization reflects its continued significance in the financial market.
While these projections offer insight, it’s important to consider market dynamics and potential risks when making investment decisions. Overall, L&T Finance Holdings remains a key player in India’s financial landscape, poised for future growth and development.
What did we learn?
- 1 About L&T Finance Holdings
- 2 L&T Finance Holdings Q3 2023-24 Financial Summary
- 3 How To Purchase L&T Finance Shares?
- 4 L&T Finance Share Price Target: 2024 To 2030
- 5 Financial Condition Of L&T Finance Holdings: Last 5 Years
- 6 FAQs
- 7 Conclusion: L&T Finance Holdings – Navigating Financial Waters and Poised for Growth
