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:

  1. 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.
  1. Additionally, the company has shown growth in quarterly net profit with an increase in profit margin.
  2. It has been generating substantial cash from its core business and has witnessed improving cash flows in the last two years.
  3. 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.

Conclusion

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.