Buy L&T Finance, target price Rs 71: Edelweiss

Edelweiss has given a buy rating to L&T Finance with a target price of Rs 71. The share price moved down by 0.08 per cent from its previous close of Rs 64.90. The stock’s last traded price is Rs 64.70.

L&T Finance Holdings Ltd., incorporated in the year 2008, is a Large Cap company (having a market cap of Rs 13032.43 Crore) operating in NBFC sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 3408.10 Crore, up .62 % from last quarter Sales of Rs 3387.06 Crore and down 5.63 % from last year same quarter Sales of Rs 3611.31 Crore Company reported net profit after tax of Rs 247.72 Crore in latest quarter.


Investment Rationale
Stock is taking support on its 21 DMA on daily timeframe. Also it is showing volatility contraction pattern which is followed by large move.

Promoter/FII Holdings
Promoters held 63.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 7.1 per cent, DIIs 5 and public and others 24.3 per cent.