L&T Finance Ltd.
NSE: LTFL&T Finance Ltd.: A 30-second snapshot
L&T Finance (LTF) is an NBFC subsidiary of the L&T group, reporting FY26 consolidated PAT of ₹3,003 crore — up 14% YoY — with 5-year revenue and earnings CAGRs of 31.9% and 26.4% respectively. The stock trades at ₹280.75, up 66.38% over 12 months, above its 50-DMA (₹274.28) and 200-DMA (₹270.55), and 14.78% below its 52-week high. PE stands at 23.6x trailing versus a forward PE of 14.8x, implying significant forward earnings growth is priced in.
P/E
23.6
Forward P/E
14.8
ROE
+11.1%
Debt / Equity
393.44
Profit Margin
+33.1%
Div. Yield
+1.0%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
62/100
News
8 headlines · 5 positive · 0 negative
L&T Finance Records Highest Ever Consolidated Annual PAT of Rs. 3,003 Cr. (before effect of Labour Code Considered in Q3FY26) in FY26, up 14% YoY - ThePrint
ThePrint
L&T Backed Finance Company Announced Q4 FY26 Results: PAT Hits Rs 807 Crore, FY26 Profit at Rs 3,003 Crore, 39% per cent Disbursement Growth - Dalal Street Investment Journal
Dalal Street Investment Journal
LTF: PAT rose to ₹2,982.87 crore, with robust capital plans and a ₹2.75 dividend recommended - TradingView
TradingView
What is Lakshya 2031? How L&T Finance plans to become an AI-led retail lender - Business Today
Business Today
Number of shareholders of L&T Finance Ltd – NSE:LTF - TradingView
TradingView
Recent context
- ·FY26 full-year consolidated PAT of ₹3,003 crore (14% YoY growth) was disclosed as the highest ever; Q4 FY26 PAT stood at ₹807 crore with 39% disbursement growth cited by management.
- ·The company has publicly outlined a strategic roadmap called Lakshya 2031 positioning LTF as an AI-led retail lender, signalling an ongoing business model transition away from infrastructure and wholesale lending toward retail and digital origination.
- ·Analyst mean rating of 2.15 across 20 analysts (1–5 scale, lower = more constructive); news sentiment across 8 articles skews positive with 5 positive and 0 negative, though the sample is small.
Strengths
- +Highest quality score among 6 Banking/NBFC peers ranked (57/100, rank 1 of 6), reflecting relative balance-sheet and earnings-composition strength even as profitability lags peer medians.
- +5-year revenue CAGR of 31.9% and earnings CAGR of 26.4% indicate sustained compounding of the loan book and net income over the medium term.
- +Forward PE of 14.8x versus trailing PE of 23.6x implies the earnings base is expected to grow materially — a 37% implied earnings expansion is embedded in the gap between trailing and forward multiples.
- +Profit margin of 33.08% and dividend yield of 0.98% alongside FY26 recommended dividend of ₹2.75 per share indicate the business is generating distributable surplus at current scale.
Weaknesses
- −ROE of 11.12% ranks 6th (last) of 6 peers and has not crossed 15% in any tracked year — structural NBFC leverage (D/E 393.4) is not converting to peer-comparable equity returns.
- −FCF was positive in only 2 of the tracked years and the debt trend is rising, resulting in an earnings consistency score of 45/100 — below median earnings predictability.
- −5-year earnings CAGR of 26.4% has not lifted ROE above 15% in any year of the tracked period, suggesting equity capital issuances or asset growth may be diluting per-share returns even as aggregate profits rise.
- −Trailing PE of 23.6x at a peer-bottom ROE leaves limited valuation cushion if forward earnings disappoint; the gap to forward PE of 14.8x is the primary support for current valuation.
Open questions
- ?Does the 5-year earnings CAGR of 26.4% reflect durable retail book quality, or is it partly driven by disbursement volume that could face asset-quality stress in a credit cycle downturn?
- ?At what ROE level would LTF’s D/E of 393.4 be considered adequately compensated relative to peers, and how long has management guided to reach that level under Lakshya 2031?
- ?The gap between trailing PE (23.6x) and forward PE (14.8x) implies roughly 60% earnings growth in the next 12 months — what specific line items in the FY26 results support or challenge that embedded expectation?
- ?How has the mix between retail and non-retail assets in the loan book shifted over the past 3 years, and what does that imply for net interest margins and credit-cost volatility going forward?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LTF | L&T Finance Ltd.You're viewing | 23.6 | +11.1% | 57 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹280.75
SMA 50
₹274.28
SMA 200
₹270.55
RSI (14)
47.1 (neutral)
From 52w high
-14.8%
1Y return
+66.4%
3M return
-2.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highROE of 11.12% has never cleared 15% in any tracked year (roeYearsAbove15 = 0) and ranks last (6th of 6) among Banking/NBFC peers — Bajaj Finance leads at 17.91%, followed by Bajaj Finserv 14.6%, Axis Bank 13.15%, HDFC Bank 13.82%, and HDFC Life 11.28%. D/E of 393.4 is structural for an NBFC lending model, but the combination of maximum peer-group leverage and lowest peer-group ROE indicates the leverage is not generating peer-comparable returns on equity.
- mediumFCF was positive in only 2 of the tracked years and the debt trend is classified as rising. Earnings consistency score of 45 and fundamental quality score of 57 (both out of 100) reflect below-median earnings predictability, though the quality score ranks 1st of 6 peers — divergence driven by balance-sheet composition rather than profitability persistence.
- mediumNews sample is small (8 articles, 5 positive, 0 negative). Positive skew on a thin sample may not be representative of the full analyst and media coverage universe; the actual news universe cannot be assessed from 8 data points.
- lowStock is 14.78% below its 52-week high at current price of ₹280.75. Nearest resistance cluster sits at ₹298.75–₹305.20, approximately 6–9% above current levels. RSI at 47.08 is neutral; stock trades above both 50-DMA (₹274.28) and 200-DMA (₹270.55).
Cross-section contradictions
- 5-year revenue growth of 31.9% and earnings growth of 26.4% combined with highest quality score among 6 peers (rank 1/6, score 57) contrast with ROE of 11.12% that ranks last among those same peers — rapid disbursement and asset growth appears to be diluting return on equity even as earnings compound.
- Stock gained 66.38% over the past 12 months and trades above both its 50-DMA and 200-DMA, yet analyst mean rating of 2.15 across 20 analysts (1–5 scale, lower = more constructive) sits closer to the middle of the scale than the price action alone might suggest.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 13 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days