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

LTF's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

Financial Ratios:

currentRatio 2.247000
forwardPE 15.777796
debtToEquity 393.442000
earningsGrowth 0.264000
revenueGrowth 0.319000
grossMargins 0.994980
operatingMargins 0.437230
trailingEps 11.870000
forwardEps 18.931670

LTF's current ratio being 2.247 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
LTF's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
LTF's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
Positive earnings and revenue growth for LTF suggest that the company is expected to grow its business. This trend reflects strong financial performance, with continued profitability and sales increases indicating a bright outlook for future expansion.
LTF's positive gross and operating margins suggest strong profitability. These margins reflect effective cost management and revenue generation, indicating that the company is efficiently managing its operations and maintaining financial health.
L&T Finance Limited's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.

Price projections:

Price projections for LTF
Price projections for LTF

The price of LTF has repeatedly been close to the lower limit of price projections. This trend suggests that the stock may be underperforming, raising concerns among investors about future performance.

Recommendation changes over time:

Recommendations trend for LTF
Recommendations trend for LTF


LTF has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see LTF as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.