Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Credit Services

L&T Finance Limited, a non-banking financial company, engages in the provision of various financial products and services in India. It offers farmer finance services, that includes farm equipment finance; rural business finance services, such as agri allied, micro finance, and rural group loans; urban finance services, that includes two-wheeler finance, consumer loans, home loans, and loans against property; SME loans; and real estate finance and infrastructure finance services. The company was formerly known as L&T Finance Holdings Limited and changed its name to L&T Finance Limited in March 2024. L&T Finance Limited was incorporated in 1994 and is headquartered in Mumbai, India. L&T Finance Limited operates as a subsidiary of Larsen & Toubro Limited.

Revenue projections:

Revenue projections for LTF
Revenue projections for LTF

With LTF's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 2.03700
forwardPE 11.36797
debtToEquity 360.39200
earningsGrowth 0.14400
revenueGrowth -0.09100
grossMargins 0.99073
operatingMargins 0.42339
trailingEps 10.56000
forwardEps 14.07000

LTF's current ratio 2.037, suggesting the company has sufficient liquidity to service its short-term debt. With its cash reserves and current assets in good shape, LTF can comfortably meet its immediate liabilities, reflecting a healthy financial standing.
LTF's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
L&T Finance Limited's high debt-to-equity ratio indicates that the company is heavily leveraged. This suggests a significant reliance on debt to finance its operations, which could expose the company to higher financial risks if its cash flow or profitability decreases.
L&T Finance Limited's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
L&T Finance Limited's positive gross and operating margins indicate a profitable and efficient business model. These metrics highlight the company's ability to generate income while controlling operational costs, reflecting strong financial performance.
L&T Finance Limited's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that L&T Finance Limited is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for LTF
Price projections for LTF

LTF's price has consistently hovered near the lower end of price projections. This trend suggests that the stock is underperforming relative to analyst expectations, indicating a potential lack of momentum for upward movement in the near future.

Recommendation changes over time:

Recommendations trend for LTF
Recommendations trend for LTF


Analysts' buy bias toward L&T Finance Limited suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, L&T Finance Limited is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.