Buy Larsen and Toubro Finance; target of Rs 200: ICICI Securities

ICICI Securities research report on Larsen and Toubro Finance

L&T Finance (LTF), during its Investor Digital Day 2024 (Link) (on 25 Nov’24), provided key insights into its project Cyclops – an AI-driven, multi-dimensional underwriting engine. The MD & CEO, as part of his opening address, highlighted LTF’s transition from being a wholesale lender to diversifying retail and digital initiatives, making it future ready with digital at the core. Thereafter, LTF’s Chief Digital Officer and Chief AI & Data Officer provided further insights into its futuristic digital architecture and how AI is driving growth. A brief overview of all its product verticals was provided by the respective business heads.

Outlook

We, therefore, revise our target multiple to 1.8x FY26E ABV (vs. 2.0x earlier) and our TP stands revised to INR 200 vs INR 225 earlier. Maintain BUY.