L&T Finance Ltd. share price target

L&T Finance (LTF), much like its MFI industry peers, is also navigating a tough period in microfinance but has admittedly exhibited much better asset quality performance (or lower credit costs) in the current MFI credit cycle.

L&T Finance’s (LTF) 3QFY25 PAT declined 2% YoY to INR6.3b (~6% beat). PPoP grew ~11% YoY to ~INR14.8b (in line).

LTF delivered an in-line performance in Q3FY25, in terms of AUM growth, PAT, and credit cost. However, ongoing stress in the MFI segment is expected to keep near-term asset growth below the targeted growth of 25%.

LTF launched its beta version for project Cyclops in Jun’24, which is an AI driven multi-dimensional underwriting engine. It uses alternate data sources, namely trust signals, geo signals and account aggregator data apart from traditional bureau data from multiple bureaus.

Net earnings were almost in line due to a better performance by retail segment except MFI, higher other income, lower opex and credit cost. It also kept RoA steady.

L&T Finance (LTF) reported 17% YoY growth in PAT to INR7b (in line) in 2QFY25. PPoP grew ~23% YoY to ~INR15.9b (in line).

LTF reported a mixed Q2FY25 result with PAT of Rs6.96bn broadly in line with our estimates, whereas it was ~3% above Consensus estimates.

L&T Finance (LTF) posted ~29% YoY PAT growth to INR6.9b (in line) in 1QFY25. PPoP grew ~19% YoY to ~INR14.7b (in line), while credit costs stood at INR5.4b

With its shift to a retail franchise ahead of its Lakshya 2026 target, L&T Finance’s Q1 consolidated net profit surged ~29.2% y/y to Rs6.85bn.

With its shift to a retail franchise ahead of its Lakshya 2026 target, L&T Finance’s Q1 consolidated net profit surged ~29.2% y/y to Rs6.85bn.

LTFH is focusing on converging with retail business metrics gradually over the medium term. Endeavor is to achieve RoA of 2.8-3.0% by FY2026 which would lead to a re-rating.

? LTFH’s earnings were significantly below estimates, led by higher provisions/higher opex in Q4FY2024, but retail business growth was solid.

LTFH’s earnings were significantly below estimates, led by higher provisions/higher opex in Q4FY2024, but retail business growth was solid.

With its shift to a retail franchisee ahead of its Lakshya 2026 target, L&T
Finance’s Q4 consolidated (adjusted) net profit jumped ~32% y/y to Rs5.5bn, with the share of retail surging 300bps q/q to 94%.