L and T Finance Share Price Review and Financial Analysis

L and T Finance's share price has been steadily increasing over the past few years, with a significant jump in 2020. The company's financial performance has been strong, with a net profit of ₹4,036 crore in 2020.

The company's revenue from operations has been consistently increasing, reaching ₹27,444 crore in 2020. This growth is due in part to the company's expansion into new markets.

L and T Finance's financial analysis indicates a strong debt-to-equity ratio, standing at 0.36 in 2020. This suggests that the company has a manageable level of debt.

The company's return on equity (ROE) has been steadily increasing, reaching 14.36% in 2020. This indicates that the company is generating strong profits from its equity.

L&T Finance's share price has been on a rollercoaster ride, with a current price of 143.79, a 0.66% increase from its previous close of 142.85. This is a relatively small gain, considering the stock's 3-year return of 83.85% compared to the Nifty 100's return of 39.6%.

In terms of intraday performance, L&T Finance has seen only 1.87% of its trading sessions in the last 13 years result in intraday gains higher than 5%. This suggests that the stock's price movements can be quite volatile.

Over the past week, the stock has shown a 4.22% gain, which is a significant improvement from its 1-day return of 0.66%. This is likely due to the 20-day moving crossover that appeared yesterday, which has historically been a bullish signal.

Here's a breakdown of the stock's returns over different time periods:

The stock's performance is also reflected in its moving averages, with the 5-day Simple Moving Average (SMA) standing at 137.24 and the Exponential Moving Average (EMA) at 139.11.

The PE Ratio of L&T Finance is 13.91, which is a reasonable multiple considering the company's growth prospects. This ratio indicates that the stock is priced at a moderate level.

The stock's market capitalization is a significant ₹35,782.61 crores, placing it in the 14th position in terms of sectoral market capitalization rank.

Here are some key metrics that give us an idea of the stock's performance:

The stock's beta is 2.76, indicating a high level of volatility in the short term, but a relatively stable performance in the long term.

The key metrics of a stock can give you a solid foundation for understanding its performance and potential.

The PE Ratio is 13.91, which means that for every rupee invested, the company earns 13.91 rupees. This is a relatively low ratio, indicating that the stock may be undervalued.

EPS - TTM is 10.33 rupees, which is the company's earnings per share over the past 12 months. This is a good indicator of the company's profitability.

The Market Capitalization is 35,782.61 crore rupees, making it a significant player in the market. It ranks 14th in terms of sectoral market capitalization.

The PB Ratio is 1.51, which is the price-to-book ratio of the company. This ratio indicates how much investors are willing to pay for every rupee of the company's book value.

The Dividend Yield is 1.74%, which is the ratio of the annual dividend payment to the stock's current price. This is a relatively low yield, indicating that the stock may not be a good choice for income investors.

Here are some key metrics summarized in a table:

The PE Ratio of L&T Fin Holding is 13.91, which is a relatively high value, but let's take a closer look at what it means. The EPS - TTM is 10.33, indicating that the company's earnings per share have been steadily increasing over time.

The Market Capitalization (MCap) of L&T Fin Holding is a whopping ₹35,782.61 crore, which is a significant amount of money. To put this into perspective, the company's MCap/Sales ratio is 2.90, which means that the market capitalization is 2.9 times the company's sales.

The Beta value of L&T Fin Holding is 2.76, which indicates that the stock is highly volatile and sensitive to market fluctuations. This is evident from the 1-month beta value of 2.76, which is higher than the 3-month and 6-month beta values.

Here's a breakdown of the company's key metrics:

The Dividend Yield of L&T Fin Holding is 1.74%, which is relatively low compared to other stocks in the market. This suggests that the company may not be distributing a significant portion of its profits to shareholders in the form of dividends.

The 52-week high and low prices of L&T Fin Holding are ₹194.25 and ₹134.10, respectively. This indicates that the stock has experienced significant price fluctuations over the past year.

The Face Value of L&T Fin Holding is ₹10.00, which is a standard value for most stocks in the market. The Book Value per Share (BV/Share) is ₹94.39, which is a relatively high value, indicating that the company's assets are valued highly by the market.

The Sectoral MCap Rank of L&T Fin Holding is 14, which indicates that the company's market capitalization is relatively low compared to other companies in its sector.

L&T Finance has consistently shown an increase in operating revenue over the years, with a significant jump from ₹5,056 crore in 2014 to ₹13,573 crore in 2021.

The company's operating revenue has grown at a steady rate, with a compound annual growth rate (CAGR) of around 10% from 2014 to 2021.

Here's a breakdown of L&T Finance's operating revenue growth over the years:

This growth in operating revenue has contributed to the company's overall financial performance, with a notable increase in profit after tax from ₹595 crore in 2014 to ₹2,561 crore in 2023.

Let's take a closer look at the quarterly results of L&T Finance. In the fiscal year 2014, the company's operating revenue was 5056 crores, which increased to 6196 crores in 2015.

Operating revenue has consistently increased over the years, with the highest recorded in 2019 at 13004 crores. The company's total income also saw a steady rise, from 5237 crores in 2014 to 15591 crores in 2024.

The total expenditure has also increased, but at a slower pace than the total income. In 2024, the total expenditure was 6354 crores, compared to 1251 crores in 2014. This indicates a significant improvement in the company's operational efficiency.

Here's a breakdown of the company's operating profit over the years:

As you can see, the company's operating profit has shown a significant increase over the years, with a peak of 10000 crores in 2019.

L&T Finance's balance sheet is a reflection of its financial performance over the years. The company's shareholder's funds have consistently increased, reaching Rs 23438 crores in Mar 2024.

Looking at the company's borrowings, we see a significant increase from Mar 2014 to Mar 2020, reaching Rs 69203 crores. However, in Mar 2024, borrowings decreased to Rs 54138 crores.

The company's current liability has been relatively stable, ranging from Rs 14053 crores in Mar 2014 to Rs 25028 crores in Mar 2024. Other liabilities and provisions have also been relatively stable, ranging from Rs 476 crores in Mar 2014 to Rs 1833 crores in Mar 2024.

Here's a breakdown of L&T Finance's liabilities over the years:

The company's equity capital has also increased over the years, reaching Rs 2489 crores in Mar 2024. Reserves have also increased significantly, reaching Rs 20950 crores in Mar 2024.

The company's cash flow has been a mixed bag over the years. In Mar 2014, the company had a net cash inflow of 487 Cr.

Cash flow from operating activities has been a significant contributor to the company's cash flow. In Mar 2021, the company had a cash flow from operating activities of 5464 Cr.

The company's cash flow from investing activities has been a drag on the company's cash flow. In Mar 2018, the company had a cash flow from investing activities of 1549 Cr.

Cash flow from financing activities has been a major contributor to the company's cash flow. In Mar 2020, the company had a cash flow from financing activities of 1451 Cr.

Here's a breakdown of the company's cash flow over the years:

The company's cash flow has been improving over the years, with a significant increase in Mar 2020.

L&T Finance has seen a significant rally in its share price over the past month, with a 17.4% increase. This is a substantial gain and suggests that investors are optimistic about the company's future prospects.

In the last 52 weeks, the stock has touched a 52-week high of Rs 193.4 and a 52-week low of Rs 117.1. This indicates that the stock has been volatile, but ultimately, it has recovered to reach its current high.

Looking at the company's quarterly results, we can see that its sales have consistently grown over the years, with a compounded sales growth of 10% over the past 10 years. This is a testament to the company's ability to expand its business and increase its revenue.

Here's a breakdown of the company's sales growth over the past 10 years:

The company's profit growth has also been impressive, with a compounded profit growth of 14% over the past 10 years. This suggests that the company has been able to maintain its profitability even as its sales have grown.

In terms of its share price, L&T Finance has experienced fluctuations over the past year, with a return of -13.46% over the past 12 months. However, in the longer term, the stock has shown a more positive trend, with a return of 81.78% over the past 3 years.

Here's a summary of the company's share price returns over the past 3 years:

Overall, L&T Finance's recent performance suggests that the company is on a strong growth trajectory, with increasing sales and profitability. However, the stock's volatility over the past year suggests that there may be some risks involved in investing in the company.