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L&T Finance Limited

LTFFinance

Fundamental Score

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L&T Finance Limited Share Price & Market Analysis

Current Market Price (CMP)
246.82
No change data available
Market Cap
61.69K (Cr)
Industry
Finance

Profitability Metrics

Poor

Return on Equity

10.79%
Poor

Return on Capital Employed

8.71%
Excellent

Operating Profit Margin (5Y)

54.46%
Average

Dividend Yield

1.11%

Valuation Metrics

Average

Price to Earnings

23.20x

Market Capitalization

61.69K (Cr)

Industry P/E

23.38x

Growth Metrics

Poor

YoY Quarterly Profit Growth

2.27%
Poor

YoY Quarterly Sales Growth

12.56%
Poor

Sales Growth (5Y)

2.46%
Poor

EPS Growth (5Y)

8.97%
Poor

Profit Growth (5Y)

9.23%

Financial Health

Poor

Debt to Equity

3.61x
Poor

Interest Coverage

1.56x
Excellent

Free Cash Flow (5Y)

1.83K (Cr)

Ownership Structure

Good

Promoter Holding

66.16%
Average

FII Holding

6.19%
Good

DII Holding

14.10%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
66.16%
Promoter Holding
61.69K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of LTF across key market metrics for learning purposes.

Positive Indicators

4 factors identified

Strong Operating Margins (54.46%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Strong Cash Generation (₹1830.43 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Balanced Promoter Holding (66.16%)

Observation: Optimal balance between promoter control and public float.

Analysis: Promoter holding in 50-75% range provides management alignment while ensuring adequate liquidity.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

6 factors identified

Suboptimal ROCE (8.71%)

Observation: Returns on capital employed are below expectations.

Analysis: ROCE <10% suggests potential inefficiencies in capital allocation. Review business model and competitive positioning.

Limited Growth History (2.46% CAGR)

Observation: Below-average 5-year sales growth trajectory.

Analysis: Low sales CAGR may indicate mature markets or limited growth opportunities. Assess future growth catalysts.

Elevated Debt Levels (D/E: 3.61)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Weak Interest Coverage (1.56x)

Observation: Limited ability to service debt obligations from earnings.

Analysis: Low interest coverage raises concerns about financial stability. Monitor cash flow and debt reduction plans.

High Debt-to-Equity Ratio

Observation: Elevated financial risk due to high leverage.

Analysis: High debt levels may strain cash flows and increase financial risk during economic downturns.

Very High Debt Levels

Observation: Excessive leverage may strain cash flows.

Analysis: Debt-to-equity above 2.0 indicates potential financial distress risk.

📊 Educational Market Overview

Disclaimer: The ratings and scores are generated algorithmically from publicly available market data and are provided for educational and informational purposes only. They do not constitute investment advice, recommendation, or solicitation to buy/sell any securities.

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Financial Statements

Comprehensive financial data for L&T Finance Limited

About LTF

Company Details

Symbol:LTF
Industry:Finance
Sector:Non Banking Financial Company (NBFC)

Market Information

Market Cap:61.69K (Cr)
P/E Ratio:23.20
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:1.11%

LTF Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)10.79%
Return on Capital Employed8.71%
Operating Profit Margin (5Y)54.46%
Debt to Equity Ratio3.61
Interest Coverage Ratio1.56

Growth & Valuation

Sales Growth (5Y)2.46%
Profit Growth (5Y)9.23%
EPS Growth (5Y)8.97%
YoY Quarterly Profit Growth2.27%
YoY Quarterly Sales Growth12.56%

Frequently Asked Questions

What is the current price of LTF?

LTF is currently trading at ₹246.82 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of LTF shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of LTF and what does it mean?

LTF has a P/E ratio of 23.20x compared to the industry average of 23.38x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹23 for every ₹1 of annual earnings. This is lower than the industry average, which might indicate undervaluation or slower growth expectations.

How is LTF performing according to Bull Run's analysis?

LTF has a Bull Run fundamental score of 42.8/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 10.79%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does LTF belong to?

LTF operates in the Finance industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting L&T Finance Limited. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for LTF?

LTF has an ROE of 10.79%, which shows decent profitability but room for improvement. Return on Equity measures how efficiently L&T Finance Limited generates profits from shareholders' equity. An ROE of 11% means the company generates ₹11 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is LTF's debt-to-equity ratio and what does it indicate?

LTF has a debt-to-equity ratio of 3.61, which indicates high leverage that increases financial risk. This means the company has ₹361 of debt for every ₹100 of equity. Higher leverage can amplify returns during good times but increases bankruptcy risk during downturns.

What is LTF's dividend yield and is it a good dividend stock?

LTF offers a dividend yield of 1.11%, which means you receive ₹1.11 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has LTF grown over the past 5 years?

LTF has achieved 5-year growth rates of: Sales Growth 2.46%, Profit Growth 9.23%, and EPS Growth 8.97%. These growth metrics show the company's ability to expand its business and improve profitability over time. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in LTF and why does it matter?

Promoters hold 66.16% of LTF shares, with 0.00% of promoter shares pledged. This high promoter holding indicates strong management confidence and alignment with shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: -0.08%.

How does LTF compare with its industry peers?

LTF trades at P/E 23.20x vs industry average 23.38x, with ROE of 10.79% and ROCE of 8.71%. The stock appears undervalued relative to peers based on P/E ratio. Peer comparison helps identify whether LTF is outperforming its competitive set in profitability, growth, and valuation metrics.

What is LTF's market capitalization and what category does it fall into?

LTF has a market capitalization of ₹61692 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for LTF?

Key ratios for LTF: ROE 10.79% (Good), ROCE 8.71%, P/E 23.20x, Debt-to-Equity 3.61, Interest Coverage 1.56x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is LTF stock and what is its beta?

LTF has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for LTF?

LTF has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹246.82, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in LTF?

Key risks for LTF include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 3.61), and operational challenges. The stock has a Fundamental Score of 42.8/100, indicating higher risk requiring thorough due diligence. Sector-specific risks in Finance include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is LTF's operating profit margin and how has it trended?

LTF has a 5-year average Operating Profit Margin (OPM) of 54.46%, which is excellent and indicates strong pricing power and cost control. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. This strong margin indicates competitive advantages and operational leverage. Compare with industry peers to understand relative performance.

How is LTF's quarterly performance in terms of sales and profit growth?

LTF's recent quarterly performance shows YoY Sales Growth of 12.56% and YoY Profit Growth of 2.27%. This shows decent growth momentum in the business. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in LTF?

LTF has FII holding of 6.19% and DII holding of 14.10%, totaling 20.29% institutional ownership. This institutional participation level shows the confidence of professional money managers. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.