BSE:533519

Stock Analysis Report

Executive Summary

L&T Finance Holdings Limited provides various financial services in India.

Snowflake

Fundamentals

Good value with acceptable track record.


Similar Companies

Share Price & News

How has L&T Finance Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

533519

-0.6%

IN Diversified Financial

1.4%

IN Market


1 Year Return

-29.2%

533519

-0.7%

IN Diversified Financial

2.3%

IN Market

Return vs Industry: 533519 underperformed the Indian Diversified Financial industry which returned -0.7% over the past year.

Return vs Market: 533519 underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

533519IndustryMarket
7 Day5.0%-0.6%1.4%
30 Day-6.9%-8.6%2.7%
90 Day-22.6%-13.7%-1.4%
1 Year-28.6%-29.2%1.4%-0.7%4.3%2.3%
3 Year-14.3%-15.8%0.9%-7.4%20.9%14.9%
5 Year29.3%24.3%17.1%-9.0%41.2%28.2%

Price Volatility Vs. Market

How volatile is L&T Finance Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L&T Finance Holdings undervalued compared to its fair value and its price relative to the market?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 533519 (₹85.55) is trading below our estimate of fair value (₹105.98)

Significantly Undervalued: 533519 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 533519 is good value based on its PE Ratio (7.6x) compared to the Diversified Financial industry average (17.1x).

PE vs Market: 533519 is good value based on its PE Ratio (7.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: 533519 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 533519 is overvalued based on its PB Ratio (1.2x) compared to the IN Diversified Financial industry average (0.5x).


Next Steps

Future Growth

How is L&T Finance Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 533519's forecast earnings growth (16% per year) is above the savings rate (7.6%).

Earnings vs Market: 533519's earnings (16% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: 533519's earnings are forecast to grow, but not significantly.

Revenue vs Market: 533519's revenue (13.9% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 533519's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 533519's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has L&T Finance Holdings performed over the past 5 years?

28.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 533519's earnings have grown significantly by 28.1% per year over the past 5 years.

Accelerating Growth: 533519's earnings growth over the past year (32.9%) exceeds its 5-year average (28.1% per year).

Earnings vs Industry: 533519 earnings growth over the past year (32.9%) exceeded the Diversified Financial industry 13.1%.


Return on Equity

High ROE: 533519's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: 533519's Return on Assets is below or equal to the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 533519's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is L&T Finance Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 533519 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 533519's debt is covered by short term assets (assets are 1.093330x debt).


Financial Institutions Analysis

Asset Level: 533519's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 533519 has a sufficient allowance for bad loans.

Low Risk Liabilities: 533519 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 533519 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 533519 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 533519 has an appropriate level of bad loans.


Next Steps

Dividend

What is L&T Finance Holdings's current dividend yield, its reliability and sustainability?

1.17%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%0.6%markettop25%2.5%industryaverage3.4%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 533519's dividend (1.17%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 533519's dividend (1.17%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stable Dividend: Whilst dividend payments have been stable, 533519 has been paying a dividend for less than 10 years.

Growing Dividend: 533519's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.9%), 533519's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 533519's dividends in 3 years are forecast to be thoroughly covered by earnings (10.5% payout ratio).


Next Steps

Management

What is the CEO of L&T Finance Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Dinanath Dubhashi (53yo)

0yrs

Tenure

₹58,800,000

Compensation

Mr. Dinanath Mohandas Dubhashi has been Managing Director of L&T Finance Holdings Limited since July 22, 2016 and has been its Chief Executive Officer since June 1, 2017 and as its Whole-Time Director sinc ...


CEO Compensation Analysis

Compensation vs. Market: Dinanath's total compensation ($USD823.37K) is about average for companies of similar size in the Indian market ($USD631.66K).

Compensation vs Earnings: Dinanath's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: 533519's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 533519's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹8,144,99912 Dec 18
Venugopal Manghat
EntityIndividual
Shares60,000
Max Price₹135.75
Sell₹1,394,27811 Dec 18
Rishi Suchdeo
EntityIndividual
Shares10,400
Max Price₹145.77
Sell₹15,098,99506 Dec 18
Virender Pankaj
EntityIndividual
Shares105,000
Max Price₹143.80
Sell₹28,468,93305 Dec 18
Sunil Prabhune
EntityIndividual
Role
Senior Key Executive
Chief Executive of Rural Finance & Group Head Digital
Shares199,000
Max Price₹143.06
Sell₹14,729,99605 Dec 18
Manoj Shenoy
EntityIndividual
Role
Senior Key Executive
Chief Executive of Wealth Management & Group Head of Corporate Social Responsibility
Shares100,000
Max Price₹147.30
Buy₹401,57204 Dec 18
Sejal Mody
EntityIndividual
Shares2,775
Max Price₹144.71
Sell₹2,452,41903 Dec 18
Manoj Shenoy
EntityIndividual
Role
Senior Key Executive
Chief Executive of Wealth Management & Group Head of Corporate Social Responsibility
Shares17,000
Max Price₹144.26
Sell₹5,621,06803 Dec 18
Virender Pankaj
EntityIndividual
Shares39,000
Max Price₹144.13
Sell₹1,902,94519 Nov 18
Girijakanta Misra
EntityIndividual
Shares14,250
Max Price₹133.54
Sell₹32,008,79119 Nov 18
Kailash Kulkarni
EntityIndividual
Role
Chief Investment Officer
Chief Executive of Investment Management
Shares240,000
Max Price₹133.37
Sell₹2,121,17506 Nov 18
Girijakanta Misra
EntityIndividual
Shares15,500
Max Price₹136.85
Sell₹2,905,36702 Nov 18
Girijakanta Misra
EntityIndividual
Shares23,800
Max Price₹125.11

Ownership Breakdown


Management Team

  • Kailash Kulkarni (53yo)

    Chief Executive of Investment Management

    • Tenure: 0yrs
  • Dinanath Dubhashi (53yo)

    CEO, MD & Whole-Time Director

    • Tenure: 0yrs
    • Compensation: ₹58.80m
  • Soumendra Lahiri (53yo)

    Chief Investment Officer of Investment Management

    • Tenure: 0yrs
  • Raju Dodti

    Chief Executive Special Situations Group & Group Head of Legal and Compliance

    • Tenure: 2.8yrs
  • Apurva Rathod (39yo)

    Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹8.55m
  • Manoj Shenoy (54yo)

    Chief Executive of Wealth Management & Group Head of Corporate Social Responsibility

    • Tenure: 2.1yrs
  • Sachinn Joshi

    Group Chief Financial Officer

    • Tenure: 4yrs
    • Compensation: ₹21.15m
  • J. Srikanth

    Chief Executive of Housing Finance & Group Head - Central Operations

    • Tenure: 2.1yrs
  • Sunil Prabhune

    Chief Executive of Rural Finance & Group Head Digital

    • Tenure: 0yrs
  • Abhishek Sharma

    Chief Digital Officer

    • Tenure: 2.8yrs

Board Members

  • Shailesh Haribhakti (63yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: ₹5.70m
  • Nishi Vasudeva (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹1.50m
  • Ramamurthi Raman (61yo)

    Non-Executive Director

    • Tenure: 11.4yrs
  • Dinanath Dubhashi (53yo)

    CEO, MD & Whole-Time Director

    • Tenure: 0yrs
    • Compensation: ₹58.80m
  • Pawan Singh (43yo)

    Nominee Director

    • Tenure: 2.3yrs
    • Compensation: ₹840.00k
  • Pradeep Bhide (69yo)

    Independent Director (Leave of Absence)

    • Tenure: 8.6yrs
    • Compensation: ₹1.60m
  • Rajani Gupte

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹800.00k
  • T. Mathew (66yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹2.00m
  • B. Prabhakar

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: ₹800.00k

Company Information

L&T Finance Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L&T Finance Holdings Limited
  • Ticker: 533519
  • Exchange: BSE
  • Founded: 2008
  • Industry: Other Diversified Financial Services
  • Sector: Diversified Financials
  • Market Cap: ₹162.271b
  • Shares outstanding: 1.95b
  • Website: https://www.ltfs.com

Number of Employees


Location

  • L&T Finance Holdings Limited
  • Plot No 177, Brindavan Building
  • CST Road
  • Mumbai
  • Maharashtra
  • 400098
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533519BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2011
L&TFHNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2011
715014BSE (Mumbai Stock Exchange)8.15PC NONCON CRPS DOA 6MAY15 RED 6MAY20ININRApr 2018
715027BSE (Mumbai Stock Exchange)8.95% PREF 12-10-21ININRNov 2018
715028BSE (Mumbai Stock Exchange)CUM NON-CNV REDEEMABLE PREFININRMay 2019
715030BSE (Mumbai Stock Exchange)7.95% CUM NON-CONV RED PREF 02/12/22ININRJun 2019
715032BSE (Mumbai Stock Exchange)CUM NON-CNV REDEEMABLE PREF 7.95%ININRSep 2019

Biography

L&T Finance Holdings Limited provides various financial services in India. It operates through Rural Business, Housing Business, Wholesale Business, Defocused Business, and Others segments. The Rural Busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:52
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.