L&T Finance Holdings is a renowned, well-diversified Non-Banking Financial Company (NBFC) with a focused variety of financial products and services in rural, housing, infrastructure finance, and mutual funds. The business is marketed by Larsen & Toubro Ltd., the biggest conglomerate in India with interests in engineering, construction, electrical & electronics manufacturing & services, IT, and finance.
LTFH’s brand name is L&T Financial Services, and through its lending and non-lending activities, it offers financial solutions to a broad range of customers. The L&T finance share price at the time of writing is Rs.78.15 and has a market cap of Rs.19,279.50 crore.Some of the stock highlights are as follows:
- The company recently declared its Q1FY23 results, which are as follows:
- Lakshya 2026 is being approached steadily, with Q1FY23 PAT rising 47% YoY.
- PAT increased 47% YoY, and PBT was up 50% YoY at Rs.357 crore.
- Fintech at scale is accelerating the utilisation process: keeping up a strong business momentum supported by digitisation, harnessing the power of data, and other intrinsic business capabilities.
- The company saw Rs.8,938 crore, up 10% QoQ and 148% YoY, representing the highest-ever quarterly retail disbursements. A strong trend for payments surpassing Q4FY22
- According to the Lakshya 2026 strategic plan, retail book sales increased by 6% QoQ and 19% YoY.
- Using new items and digital technologies to boost output to enable future expansion: developing end-to-end digital products at a steady pace Consumer Loan Disbursements of Rs.1,010 crore, up 26% QoQ. Continuous growth in SME loans – Pilot began in Q3FY22 and booked a size of Rs.126 crore until Q1FY23.
- Additionally, the company has shown growth in quarterly net profit with an increase in profit margin.
- It has been generating substantial cash from its core business and has witnessed improving cash flows in the last two years.
- The company also enjoys high trailing 12-month EPS growth.
Despite the positive outlook, the company suffers from high-interest payments compared to its earnings. Besides that, high debt, and inefficient use of capital to generate profit have led to a decline in RoCE in the last two years.A high debt component is often viewed as a negative aspect of any company. Therefore, when choosing a stock, the investor must look at the company’s debt on its balance sheet.
Even though L&T Finance share price has some significant aspects in terms of its PAT and PBT, the high debt component cannot be overlooked. This can be a reason why the investors are selling L&T Finance stocks.Before considering adding the stock to your investment kitty, keeping an eye on the debt component is essential, as it can adversely affect future returns.