Broker’s Call: L&T Fin Holdings (Buy)

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Target: $150

CMP: INR 117.95

We recommend a rating purchase L&T Finance Holdings Where we think it’s well-positioned for a $150 price target based on a valuation of 1.4x P/AVBPS. With its strong lending performance, successful retail strategy, improved profitability, and ongoing consolidation process, LTFH demonstrates significant upside potential.

The company’s strong growth prospects, including an increase in retail payments and a rapid decline in the wholesale book, contribute to its attractiveness.

LTFH is a prominent NBFC based in Mumbai, India. Known for its strong lending business, LTFH caters to the diverse financing requirements of both serviced and underserved clients. LTFH shows a strong presence in the Indian market. Its comprehensive portfolio of lending services positions it well to seize opportunities and sustain growth.

With a focus on meeting the financing needs of diverse client segments, LTFH is well positioned to capitalize on India’s growing demand for credit and financial services. Benefiting from a strong parent company, L&T Finance Holdings Ltd. It has an impressive “AAA” rating from the famous rating agencies.

The company maintains a strong distribution network, with wide dealer coverage in the agricultural equipment sector (2,500+ dealers) and strong networks in the two-wheeler sector (5,500+ tie-ups).