Financial Services · NSE/BSE: LTF
L&T Finance Limited
Non Banking Financial Company (NBFC)
Market Cap ₹0.74L Cr
Verdict: Average
Quality Scores
Multi-Bagger
71/100
Compounder Quality
74/100
Management Credibility
80/100
Governance
92/100
Cash Flow Quality
55/100
AI Summary
L&T Finance (LTF) is a core NBFC subsidiary of the L&T Group, currently executing a strategic pivot from wholesale to retail lending under its 'Lakshya' goals. The company manages an AUM focused on Urban Finance (Two-wheelers, Micro-loans) and Rural Finance, achieving a retailisation mark of over 90%. While revenue growth has been modest at a 5-year CAGR of 6%, profitability has seen a sharper rebound recently with a 32.4% CAGR over the same period. The balance sheet remains heavily leveraged as per industry norms, but a conscious effort to de-risk the wholesale book is evident. Despite…
Top Opportunities
- Strong parentage of Larsen & Toubro (L&T)
- Aggressive pivot to high-yield Retail segments (80%+ of book)
- Excellent 5-year Profit CAGR of 32%
Top Risks
- Historically poor sales growth (6% over 5 years)
- Low ROE profile (8-11%) compared to elite NBFC peers
- Exposure to volatile rural economy via Microfinance
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