Get App
Last Updated : May 19, 2020 11:01 AM IST | Source:

Buy Larsen and Toubro Financial Holdings; target of Rs 75: Motilal Oswal

Motilal Oswal is bullish on Larsen and Toubro Financial Holdings has recommended buy rating on the stock with a target price of Rs 75 in its research report dated May 18, 2020.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

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

LTFH reported 4QFY20 PAT of INR3.8b (-30% YoY), ~20% below our estimates. The miss was largely on account of lower-than-expected total income (8% miss) while opex and credit costs were in line. LTFH reported INR844m in net loss on fair value changes, which led to the topline miss. LTFH created additional provisions of INR3.1b for the impact of COVID-19 during the quarter, of which INR2.1b was as per the RBI’s requirement of 5% provisioning against 1-89dpd loans under moratorium. The provision would be repeated in 1QFY21. While as of Mar’20, ~36% of AUM was under moratorium, a modest increase was seen in April.


Asset quality performance would be the key monitorable going ahead. We cut our FY21/FY22 EPS estimates by 17%/8% to factor in higher credit costs given the extended lockdown. Buy, with TP of INR75 (0.8x FY22E BVPS).

For all recommendations report, click here

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

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 19, 2020 11:01 am
Follow us on