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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of L&T Finance Holdings Ltd

About the Company - L&T Finance Holdings Ltd

L&T Finance Holdings Ltd. is a Public Limited Listed company incorporated on 01/05/2008 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH2008PLC181833 and registration number is 181833. Currently Company is involved in the business activities of Activities of holding companies. Company’s Total Operating Revenue is Rs. 335.87 Cr. and Equity Capital is Rs. 2474.04 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsBrindavan, Plot No. 177, CST Road, Kalina, Mumbai Maharashtra 400098igrc@ltfs.com
http://www.ltfs.com
Management
NamePosition Held
Mr. S N SubrahmanyanChairperson & Non Executive Director
Mr. Dinanath DubhashiManaging Director & CEO
Mr. R Shankar RamanNon Executive Director
Mr. P V BhideIndependent Director
Dr.(Mrs.) Rajani GupteIndependent Director
Mr. T Thomas MathewIndependent Director
Mr. Shailesh HaribhaktiIndependent Director
Mr. Pavninder SinghNominee Director

L&T Finance Holdings Ltd. Share Price Update

Share PriceValue
Today₹171.85
Previous Day₹170.40

Basic Stock Data of L&T Finance Holdings Ltd

Market Cap 42,598 Cr.
Current Price 171
High / Low179/79.0
Stock P/E19.5
Book Value 89.2
Dividend Yield1.16 %
ROCE7.56 %
ROE6.41 %
Face Value 10.0

Data Source: screener.in

Competitors of L&T Finance Holdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Steel City Securities Ltd 122 Cr. 81.094.7/58.013.0 75.93.68 %14.3 %10.4 % 10.0
Religare Enterprises Ltd 7,748 Cr. 235281/13021.0 66.80.00 %15.5 %5.39 % 10.0
PNB Gilts Ltd 1,923 Cr. 107128/55.2243 70.90.00 %4.83 %6.33 % 10.0
Lakshmi Finance & Industrial Corporation Ltd 66.0 Cr. 220249/94.08.13 1690.92 %0.45 %1.17 % 10.0
Nahar Capital & Financial Services Ltd 516 Cr. 308359/24027.8 9250.49 %6.05 %6.91 % 5.00
Industry Average142.4 Cr190.262.59261.521.02%8.23%6.04%9

L&T Finance Holdings Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3,3853,4153,0542,9582,9712,9472,9883,1383,4323,2163,2233,2143,534
Expenses1,4661,2371,4051,3121,2991,2281,3881,2361,3561,2821,2701,3311,375
Operating Profit1,9192,1781,6491,6461,6721,7191,6001,9022,0761,9341,9531,8822,159
OPM %57%64%54%56%56%58%54%61%60%60%61%59%61%
Other Income170172109134180172187165-44820215326847
Interest1,7241,6091,5101,4451,4071,3921,4131,4381,5011,4451,3641,3251,353
Depreciation21222328242827272829302829
Profit before tax34471822630642047034660199662714797824
Tax %16%63%22%27%27%27%25%32%-356%37%26%25%22%
Net Profit288266177223308341261406453417531594639
EPS in Rs1.181.080.720.911.321.381.061.641.832.022.142.402.57

L&T Finance Holdings Ltd Quarterly Chart

L&T Finance Holdings Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,0043,9905,2216,4567,4408,53210,21513,36514,10413,35311,93012,77513,086
Expenses5391,0251,2301,6251,9792,7763,3083,3774,1605,4015,2335,2485,239
Operating Profit2,4642,9653,9914,8315,4615,7566,9079,9889,9447,9526,6977,5277,846
OPM %82%74%76%75%73%67%68%75%70%60%56%59%60%
Other Income-13419-51682649-4370836594105175
Interest1,7072,3303,0813,5774,1334,6355,4586,8827,5527,2305,7655,8125,634
Depreciation60658096836752508286103111115
Profit before tax6849898251,1751,2531,0791,4463,0522,6801,4721,4231,7092,273
Tax %34%26%28%28%32%3%12%27%37%36%26%10%
Net Profit4557305958558571,0481,2782,2321,7009491,0491,5361,994
EPS in Rs2.163.462.824.043.974.835.119.066.903.934.336.558.39
Dividend Payout %0%18%22%16%16%13%16%9%11%0%12%31%

L&T Finance Holdings Ltd Profit & Loss Yearly Chart

L&T Finance Holdings Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:5%
3 Years:-3%
TTM:5%
Compounded Profit Growth
10 Years:8%
5 Years:1%
3 Years:-8%
TTM:90%
Stock Price CAGR
10 Years:9%
5 Years:8%
3 Years:21%
1 Year:92%
Return on Equity
10 Years:10%
5 Years:8%
3 Years:5%
Last Year:6%

L&T Finance Holdings Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1,7151,7171,7181,7201,7531,7561,9961,9992,0052,4692,4742,4802,483
Reserves3,0383,7534,1074,6565,3246,0209,41111,45012,68816,30417,47419,04919,702
Preference Capital07501,0001,3631,2131,213000000
Borrowings21,07728,24735,85442,09151,61659,81175,24891,50793,93488,59285,23783,10576,622
Other Liabilities1,1032,8523,1824,2755,1074,9241,1171,0949021,5821,6961,7062,189
Total Liabilities26,93336,57044,86152,74263,79972,51187,772106,050109,529108,947106,880106,339100,997
Fixed Assets5201,1311,2281,1841,3131,2301,1511,1271,1001,138509553539
CWIP33891401742228193962242250
Investments7701,8432,7302,6493,5636,0125,3018,6415,9798,87211,91714,36612,878
Other Assets25,61033,50740,76348,73658,90165,24281,30196,243102,38798,91294,43391,41587,579
Total Assets26,93336,57044,86152,74263,79972,51187,772106,050109,529108,947106,880106,339100,997

L&T Finance Holdings Ltd Reserves and Borrowings Chart

L&T Finance Holdings Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -5,993-6,096-6,083-6,474-9,213-5,779-15,640-11,6432,1625,4646,0787,490
Cash from Investing Activity -171-1,671-1,0322-675-2,1181,549-3,587160-2,025-5,087-1,634
Cash from Financing Activity 6,1117,9477,6026,5529,4267,95214,67816,0081,451-2,091-3,023-1,664
Net Cash Flow-5318048781-461555877773,7721,349-2,0324,193

L&T Finance Holdings Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days132113532100
Inventory Days
Days Payable
Cash Conversion Cycle132113532100
Working Capital Days927286143210132271-3112613322
ROCE %11%10%10%10%10%9%9%10%10%8%7%8%

L&T Finance Holdings Ltd Financial Efficiency Indicators Chart

L&T Finance Holdings Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters63.65%63.62%63.59%63.53%63.50%66.26%66.23%66.20%66.15%66.11%66.10%66.02%
FIIs9.36%10.60%8.79%8.25%7.86%6.91%6.61%6.75%11.24%11.35%13.90%12.11%
DIIs5.27%5.88%6.57%6.57%6.11%4.57%5.34%5.35%6.05%6.58%5.29%7.02%
Public21.72%19.91%21.05%21.66%22.53%22.26%21.82%21.69%16.56%15.96%14.73%14.85%
No. of Shareholders6,10,4886,34,6147,05,2297,20,6297,67,7157,86,1137,63,7097,50,8857,07,0707,08,2376,63,7696,95,023

L&T Finance Holdings Ltd Shareholding Pattern Chart

No. of L&T Finance Holdings Ltd Shareholders

L&T Finance Holdings Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Arbitrage Opportunities Fund56801260.3584.21
Nippon India Arbitrage Fund30698560.3845.51
ICICI Prudential Equity - Arbitrage Fund28378320.2537.74
SBI Equity Savings Fund23648601.0835.06
Axis Arbitrage Fund16777120.7124.87
Axis Business Cycles Fund15120000.8522.42
Mahindra Manulife Mid Cap Fund15030001.2822.28
LIC MF Flexi Cap Fund14883332.4822.06
Mahindra Manulife Flexi Cap Fund9660811.3214.32
Edelweiss Arbitrage Fund9236340.1813.69

L&T Finance Holdings Ltd ROCE Trend

L&T Finance Holdings Ltd EPS Trend

L&T Finance Holdings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)6.564.334.498.5011.15
Diluted EPS (Rs.)6.544.324.478.4611.10
Cash EPS (Rs.)6.644.664.208.8911.41
Book Value[Excl.RevalReserv]/Share (Rs.)87.1881.3576.8274.3868.39
Book Value[Incl.RevalReserv]/Share (Rs.)87.1881.3576.8274.3868.39
Revenue From Operations / Share (Rs.)51.5248.2255.3970.3564.99
PBDIT / Share (Rs.)32.4228.6134.6551.2549.84
PBIT / Share (Rs.)31.9728.2034.3050.8449.59
PBT / Share (Rs.)-2.244.946.0513.3715.27
Net Profit / Share (Rs.)6.204.243.848.4811.17
NP After MI And SOA / Share (Rs.)6.554.333.938.4811.14
PBDIT Margin (%)62.9259.3462.5572.8576.68
PBIT Margin (%)62.0558.4861.9272.2776.30
PBT Margin (%)-4.3510.2510.9319.0023.49
Net Profit Margin (%)12.028.796.9312.0517.18
NP After MI And SOA Margin (%)12.708.977.0912.0517.13
Return on Networth / Equity (%)7.545.365.1711.5716.55
Return on Capital Employeed (%)13.0310.5112.0315.819.40
Return On Assets (%)1.521.000.891.552.09
Long Term Debt / Equity (X)1.812.302.723.366.80
Total Debt / Equity (X)3.864.274.726.396.80
Asset Turnover Ratio (%)0.010.010.000.010.01
Current Ratio (X)2.252.552.712.34144.73
Quick Ratio (X)2.252.552.712.34144.73
Dividend Payout Ratio (NP) (%)7.620.000.0022.370.00
Dividend Payout Ratio (CP) (%)7.130.000.0021.350.00
Earning Retention Ratio (%)92.380.000.0077.630.00
Cash Earning Retention Ratio (%)92.870.000.0078.650.00
Interest Coverage Ratio (X)1.391.231.191.371.45
Interest Coverage Ratio (Post Tax) (X)1.341.151.101.231.33
Enterprise Value (Cr.)90724.7197339.03103970.9396615.13120326.95
EV / Net Operating Revenue (X)7.108.167.606.859.26
EV / EBITDA (X)11.2913.7512.159.4012.08
MarketCap / Net Operating Revenue (X)1.591.671.730.732.35
Retention Ratios (%)92.370.000.0077.620.00
Price / BV (X)0.940.991.260.702.27
Price / Net Operating Revenue (X)1.591.671.730.732.35
EarningsYield0.070.050.040.160.07

L&T Finance Holdings Ltd Profitability Ratios (%)

L&T Finance Holdings Ltd Liquidity Ratios

L&T Finance Holdings Ltd Liquidity Ratios (%)

L&T Finance Holdings Ltd Interest Coverage Ratios (%)

L&T Finance Holdings Ltd Valuation Ratios

Fair Value of L&T Finance Holdings Ltd Stock

Fair Value: ₹112.79

The stock is overvalued by 34.04% compared to the current price ₹171

*Investments are subject to market risks

Strength and Weakness of L&T Finance Holdings Ltd Stock

StrengthWeakness
  1. The company has higher reserves (10,228.92 cr) compared to borrowings (426.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (9.08 cr) and profit (193.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 38.98 and average Dividend Yield of 66.20%.
  2. The stock has a low average ROCE of 9.33%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 170.83, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 1.83, which may not be favorable.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in L&T Finance Holdings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE