Shares of L&T Finance declined as much as 6% on Friday, October 16, even after reporting positive earnings in the second quarter. The stock is attempting to recover from the lows of the day.
L&T Finance’s total loan book increased by 28% in the second quarter to ₹1.36 lakh crore from ₹1.07 lakh crore last year. Its net interest income, or core income earned by the non-bank lender, increased by 32.6% to ₹3,187.36 crore from ₹2,403.12 crore in the year-ago period.
The company’s pre-provision operating profit (PPOP) stood at ₹1,947.53 crore, up 30.3% from the previous fiscal’s ₹1,494.41 crore.
Net profit after tax increased 32.4% to ₹972.76 crore from ₹734.88 crore in the September quarter last year.
The company’s net interest margins (NIM) expanded to 8.88% from 8.54% sequentially and from 8.42% in the previous fiscal.
L&T Finance’s gross stage 3 contracted to 2.7% from 2.86% sequentially. Its credit cost also declined to 2.46% from 2.54% last quarter.
In its business update earlier this month, L&T Finance said its retail disbursements were up 27% to ₹24,000 crore from ₹18,883 crore last year while its retail loan book was up 29% to ₹1.35 lakh crore compared to ₹1.05 lakh crore in the year-ago period.
Buy Or Sell L&T Finance Shares?
Brokerage firm Elara Capital has the highest price target on the street for L&T Finance at ₹390 apiece, which implies an upside potential of 56% from current levels. This is followed by four firms, UBS, Citi, Axis Capital, and ICICI Direct, who have a price target of ₹380 each on the stock.
Among those who are bearish on the stock, Morgan Stanley has the lowest target of ₹210 with an underweight rating, while IIFL and Kotak are the other two bears on the stock with a “sell” and “reduce” rating respectively.
20 out of the 24 analysts who cover the stock have a “buy” rating on it, one says “hold”, while three others have a “sell” recommendation on the stock. The consensus estimates of price targets implies an upside potential of 31% from current levels.
Shares of L&T Finance are looking to recover from the lows of the day, currently trading 3.6% lower at ₹252.55. The stock has now extended its losses to 20% for 2026 after Friday’s fall.
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