Motilal Oswal's research report on Larsen and Toubro Finance Holdings
L&T Finance Holdings (LTFH) posted a 4QFY22 consolidated PAT of INR3.4b (16% miss). FY22 PAT rose 11% YoY even as the credit costs remained elevated at ~3.6% since LTFH decided to further increase the pandemic management overlay against expectations of utilizing the same in 4QFY22. Loan book started exhibiting growth and stood at INR883b (up 3% QoQ), driven primarily by infrastructure loans and home loans (up 5% QoQ each) as well as MFI loans (up 11% QoQ). The Rural Finance business (particularly Micro and Consumer loans) displayed strength, with monthly disbursement run-rate exceeding pre-COVID levels in 4QFY22.
Outlook
We maintain our BUY rating on the stock with a TP of INR100 (premised on 1.1x FY24E consolidated 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
