United States

Analyst Research Report Snapshot


L&T Finance Holding Ltd. | Q2FY14 First Cut Analysis




IndiaNivesh Securities Pvt Ltd


23 Oct 2013





Companies referenced:


Available for Immediate Download

L&T Finance Holding Ltd. (LTFHL) | Q2FY14 First Cut Analysis Numbers as per expectations but NPA continue to increase Net Interest Income (NII) of LTFHL increased at a healthy rate of 18% y-o-y (down 2% q-o-q) to Rs 4.6 bn in Q2FY14. Interest income grew 32% y-o-y (6% q-o-q) and interest expense grew at a much faster pace of 41% y-o-y (12% q-o-q) to Rs 12.3 bn and Rs 7.7 bn respectively. Valuation: LTFHL’s Q2FY14 result was disappointing on asset quality front; however loan book momentum remains healthy driven by disbursals (at a slow pace) in both financing subsidiaries. Asset quality deteriorated further and we expect that stress on asset quality will remain for next two quarters. At CMP of Rs 77, the stock is trading at P/ABV of 2.3x and 2.0x for FY14E and FY15E respectively. The stretched valuation and deterioration in assets quality leaves limited upside. We maintain HOLD rating on a stock with a target price of Rs 81.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.