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LTF: Higher Future P E Multiple Will Likely Exacerbate Overvaluation Risks

Analysts Lift L&T Finance Target as Revenue and Profit Margin Projections Improve

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LTF
AnalystConsensusTarget
Not Invested
Published 17 Dec 2024

Update shared on 05 Dec 2025

Fair value Increased 1.11%
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AnalystConsensusTarget's Fair Value
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1Y
112.0%
7D
-2.1%

Analysts have nudged their price target on L&T Finance slightly higher to around ₹264 from about ₹261, citing marginally improved fair value estimates supported by stable revenue growth, profit margins, and a modestly higher expected future P/E multiple, despite a slightly increased discount rate.

What's in the News

  • Board meeting scheduled for October 15, 2025, to consider and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, review related party transaction disclosures under Regulation 23(9), and take up other business matters (Key Developments)
  • L&T Finance Limited to host an Analyst and Investor Day, providing management updates and strategic insights to the investment community (Key Developments)

Valuation Changes

  • The fair value estimate has risen slightly from approximately ₹261.32 to about ₹264.21 per share, reflecting a modest upward revision in intrinsic value.
  • The discount rate has increased marginally from about 13.65 percent to roughly 13.68 percent, indicating a slightly higher required return assumption.
  • The revenue growth outlook has edged down slightly from around 32.38 percent to about 32.33 percent, implying a nearly stable but marginally lower top-line growth expectation.
  • The net profit margin forecast has dipped very slightly from roughly 28.84 percent to about 28.83 percent, suggesting essentially unchanged profitability assumptions.
  • The future P/E multiple has risen modestly from about 18.0x to roughly 18.3x, signaling a small increase in expected valuation relative to earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.