Moneycontrol
Get App
Last Updated : Jan 23, 2019 04:48 PM IST | Source: Moneycontrol.com

Buy Larsen and Toubro Finance Holdings; target of Rs 185: Motilal Oswal

Motilal Oswal is bullish on Larsen and Toubro Finance Holdings has recommended buy rating on the stock with a target price of Rs 185 in its research report dated January 22, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Larsen and Toubro Finance Holdings


L&T Finance Holdings’ (LTFH) 3QFY19 PAT grew 81% YoY to INR5.8b, in line with our estimate, driven by strong AUM growth (+23% YoY), ‘retailization’ of the balance sheet, and improving asset quality. The company managed its liquidity situation well with a positive ALM gap of INR60b+ in a stress case scenario as on 31st Dec’18. LTFH has cash and liquid investments of INR42b (~4% of BS) and undrawn lines of INR110b+. LTFH has exposure to six SPVs of subsidiaries of IL&FS, of which one SPV paid its dues in Jan’19 (amount unknown). Three SPVs communicated that normal servicing of loans has been stayed by NCLAT, while the other two SPVs are yet to communicate to its lenders. However, management is confident of nil eventual credit losses from the IL&FS exposures.


Outlook


We remain confident that LTFH would continue to generate strong return ratios over the medium term. We keep our estimates as well as our TP unchanged. Maintain Buy with a TP of INR185 is based on 2.1x Dec 2020E BVPS.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jan 23, 2019 04:48 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant