Buy L&T Finance Holdings, target price Rs 97: ICICI Securities

ICICI Securities has buy call on L&T Finance Holdings with a target price of Rs 97. The current market price of L&T Finance Holdings Ltd. is Rs 73.05. Time period given by analyst is one year when L&T Finance Holdings Ltd. price can reach defined target.

L&T Finance Holdings Ltd., incorporated in the year 2008, is a Large Cap company (having a market cap of Rs 18034.79 Crore) operating in NBFC sector.

L&T Finance Holdings Ltd. key Products/Revenue Segments include Dividend, Interest for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 3099.12 Crore, down -1.13 % from last quarter Total Income of Rs 3134.46 Crore and down -14.44 % from last year same quarter Total Income of Rs 3622.16 Crore. Company reported net profit after tax of Rs 307.88 Crore in latest quarter.

Investment Rationale
The company stays put on rapid retailisation of portfolio (50% vs 41% YoY) by i) strengthening existing products’ expertise, ii) launching new products to capture adjacencies and new markets; and iii) customer-centric approach to cross-sell loan products. Sustaining NIMs (including fee income) above 8% and opex + credit cost at 5.0-5.5%, it targets 2.6-3.0% (pretax) RoA in medium term. Retaining target price at Rs97, given correction of ~14% in stock in past 3 months, the brokerage upgrades it to ‘BUY’ from Add.

Promoter/FII Holdings
Promoters held 63.5 per cent stake in the company as of 31-Dec-2021, while FIIs owned 7.86 per cent, DIIs 6.11 per cent.