|Share Price||Rs. 137.45|
|Market Capitalization||Rs. 34,154 crore|
|Trailing Twelve Months (TTM) Earnings Per Share (EPS)||Rs. 7.62|
|Trailing Twelve Months (TTM) Price-to-Earnings (PE) Ratio||18.05|
|Price-to-Book (P/B) Ratio||1.71|
|Return on Equity (ROE)||21.23%|
They’re kind of a big deal in the non-banking financial world in India. They’ve got their fingers in all the financial pies, from helping folks in rural areas to those looking for a home, and even those big infrastructure projects. You name it, they’ve probably got a financial product for it.
And here’s the kicker – they’re not flying solo. They’re the offspring of Larsen & Toubro Ltd., a heavyweight in the engineering and construction scene in India.
Now, what’s really impressive is how L&TFH has weathered some pretty tough storms. Despite the crazy rollercoaster ride of the economy and that pesky COVID-19 pandemic, they’ve managed to keep their financial ship steady.
L&TFH Share Price Performance
Picture this: Since the year began, their share price has been climbing like a champ, up by a whopping 86%! That’s like taking the express elevator to the top floor. They’re leaving the Nifty Financial Services Index in the dust, which only managed a 32% gain during the same period. Talk about outperforming the competition!
As of October 6, 2023, their share price closed at Rs. 137.45 on the National Stock Exchange (NSE). That’s a 4.60% jump from the previous close at Rs. 131.50. And if that doesn’t impress you, just check this out – they hit a 52-week high of Rs. 140.20 on October 5, 2023, and a low of Rs. 73.70 on October 9, 2022.
Now, when we talk big numbers, their market capitalization as of October 6, 2023, stands at a whopping Rs. 34,154 crore. That’s some serious moolah and puts them in the big league of NBFCs in India by market value.
Oh, and by the way, each of their shares has a face value of Rs. 10 and a sweet dividend yield of 1.45%.
L&TFH Financial Performance Highlights
So, for the quarter that ended on June 30, 2023 (Q1 FY24), they basically knocked it out of the park. Their net profit? A whopping Rs. 531 crore, and that’s a jaw-dropping 102.57% increase compared to the same time last year. It’s like they’ve hit the turbo button!
Their net profit margin also jumped up, going from 14.82% to an impressive 26.37% in Q1 FY24. Earnings per share (EPS) went up too, from Rs. 0.91 to Rs. 2.13 in the same period.
When it comes to revenue, they raked in Rs. 2,013 crore in Q1 FY24, which is a pretty sweet 16.86% increase compared to the previous year. And they’re not spending like crazy either; their operating expenses went down by 8.20% to Rs. 1,299 crore in Q1 FY24.
The tax man was also a bit gentler on them with an effective tax rate of 25.65% in Q1 FY24, down from 28.68% in Q1 FY23.
Now, onto their assets. In Q1 FY24, their assets under management (AUM) reached a hefty Rs. 1,02,338 crore, which is a cool 13% increase year-on-year.
But what about the not-so-great stuff? Well, their gross non-performing asset (GNPA) ratio dropped from 5.03% to 4.80%, and their net non-performing asset (NNPA) ratio went down from 2% to 1.80% in Q1 FY24 compared to Q4 FY23.
And just so you know, their capital adequacy ratio (CAR) is a solid 21%, way above the required 15%. Plus, they’ve got more than enough liquidity with a liquidity coverage ratio (LCR) of over 100%, ensuring they can meet their short-term obligations.
L&TFH Growth Drivers and Outlook
They’re all about profitable and sustainable growth, and they’re not afraid to shake things up. Here’s the deal:
Rural Segment: L&TFH is going big in the rural scene. They’re giving micro loans, two-wheeler loans, farm equipment loans, and more to folks in rural and semi-urban areas. They’re everywhere, with over 1,400 branches and 40,000+ business buddies across India. And they’re not just in your neighborhood; they’re in your pocket with a mobile app, chatbot, and call center. The rural segment is their bread and butter, accounting for 38% of their AUM as of June 30, 2023.
Housing Segment: Home sweet home, right? L&TFH is making dreams come true with home loans, property loans, and real estate finance for all sorts of folks. They’ve got a soft spot for affordable housing, where there’s a big demand and not enough supply. The housing segment is no small fry either, making up 32% of their AUM as of June 30, 2023.
Infrastructure Segment: Building the future! L&TFH is a pro in the infrastructure game, funding projects in renewable energy, roads, power, and more. But they’re not throwing money around; they’re careful, making sure projects have good cash flow and quality. Plus, they’re not afraid to shuffle the deck with refinancing, securitization, and asset moves. As of June 30, 2023, the infrastructure segment accounted for 19% of their AUM.
Wholesale Segment: They’re not just about small change; they’re big on corporate loans, supply chain finance, and more. They’re helping businesses of all sizes with their financial needs, using their know-how and relationships. They’re smart with their funds, managing things like a pro with different sources like bank loans, debentures, and commercial papers. The wholesale segment is no joke, making up 11% of their AUM as of June 30, 2023.
L&TFH expects to maintain its growth momentum and profitability in the coming quarters, driven by the recovery in the economy, the improvement in consumer sentiment, the revival in credit demand, and the favorable policy environment for the NBFC sector. The company also expects to benefit from its strong brand equity, diversified product portfolio, wide distribution network, digital capabilities, and robust risk management practices.
L&TFH Share Price Valuation
Let’s talk numbers! L&T Finance Holdings Ltd. (L&TFH) is serving up some tasty stats. 📊
Price-to-Earnings (PE) Ratio: Right now, their share price is sitting at a trailing twelve months (TTM) PE ratio of 18.054. Now, that’s lower than the sector average of 28.924. Well, it’s like getting a discount on a hot deal. The share price seems undervalued compared to their buddies in the NBFC sector.
Price-to-Book (P/B) Ratio: But wait, there’s more! Their share price is strutting its stuff with a P/B ratio of 1.714. That’s higher than the sector’s P/B ratio of 1.504. It’s like saying, “Hey, we’ve got a strong book value and an awesome return on equity (ROE).” The market is taking notice.
Target Price: The experts are in on this too. They’re saying, “Hold on to your hats!” The consensus target price for L&TFH’s share price is Rs. 153.67. That’s an 11.76% potential upside from where it’s at right now. The consensus recommendation is “Buy.” Why? Because the company’s got a bright future ahead, and everyone wants a piece of the action.
let’s sum it up. L&T Finance Holdings Ltd. (L&TFH) is not just holding its own; it’s a superstar in the NBFC sector. 🌟
Performance: They’ve got the track record to prove it, with consistent and robust financial performance. Their product range is a powerhouse, their customer base is wide and deep, and they’ve got the backing of a strong parent company.and their digital game is on point, and they’re masters at managing risks.
Valuation: But here’s the kicker – their share price is a hidden gem. The lower PE ratio suggests it’s undervalued compared to its peers in the NBFC sector. And don’t even get us started on the P/B ratio; it’s singing the praises of their strong book value and ROE.
Outlook: The future is looking bright. With the economy bouncing back, happy consumers, increased credit demand, and favorable policies in the NBFC sector, L&TFH is set to shine even brighter.
Target Price: The experts are singing the same tune. Their consensus target price of Rs. 153.67 says there’s an 11.76% potential upside waiting for investors. And the consensus recommendation? It’s a resounding “Buy.” Why? Because L&TFH is the rising star everyone wants a piece of.
Disclaimer: But remember, this is just the tip of the iceberg. Always do your own homework before diving into any investment. This blog post is for information purposes only and not financial advice.