Please refer to important disclosures at the end of this report
1
L&T Finance Holdings is a financial holding firm that offers financial services
across the rural, housing and wholesale finance. It is promoted by engineering
and construction major L&T. L&T Finance Holdings reported a rise of 7.8 % in
consolidated net profit at INR.207.4cr for Q1FY17. Company's consolidated net
profit stood at INR.192.46cr in the April-June quarter of the previous fiscal.
Loans and advances in focused business grew by 23% vs. 26% decline in the
de-focused business; overall growth in loans & advances is 17%. The L&T is in
process of low yielding business such as PE, Prop investment, and AMC.
Although the AMC business is not capital intensive, it generate wafer thin margin,
which doesn’t enhance ROE. The divestment low yielding business is part of a
strategy to improve the use of resources, improve the return on equity (ROE) and
profitability. ROE has been 10-11% for four years and the aim is to move this to
17-18% over three to four years. We believe consolidation in bid to improve
returns bodes well for L&T Finance Holding. Hence Buy
BUY
CMP `97
Stock Info
Sector
Beta 0.8
Bloomberg Code
LTFH IN
Shareholding Pattern (%)
Promoters 66.7
MF / Banks / Indian Fls 2.0
FII / NRIs / OCBs 10.0
Indian Public / Others
21.3
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
L&T Fin Hold. 24.0 55.1 70.0
Finance
Market Cap (
`
cr) 17,015
52 Week High / Low 99/48
Avg. Daily Volume 636,683
Face Value (
`
)10
BSE Sensex 28,532
Nifty 8,810
Reuters Code LTFH.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
L&T Finance Holdings
Others | Finance
September 6, 2016
L&T Finance Holdings | Finance
September 6, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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