L&T Finance Limited

NSEI:LTF Stock Report

Market Cap: ₹345.0b

L&T Finance Valuation

Is LTF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LTF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LTF (₹139.55) is trading above our estimate of fair value (₹92.52)

Significantly Below Fair Value: LTF is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LTF?

Key metric: As LTF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LTF. This is calculated by dividing LTF's market cap by their current earnings.
What is LTF's PE Ratio?
PE Ratio13.4x
Earnings₹25.75b
Market Cap₹344.96b

Price to Earnings Ratio vs Peers

How does LTF's PE Ratio compare to its peers?

The above table shows the PE ratio for LTF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.5x
ABCAPITAL Aditya Birla Capital
13x13.7%₹485.8b
JIOFIN Jio Financial Services
124.1xn/a₹2.0t
BAJAJFINSV Bajaj Finserv
30x26.2%₹2.6t
LICHSGFIN LIC Housing Finance
7x5.2%₹339.6b
LTF L&T Finance
13.4x21.0%₹345.0b

Price-To-Earnings vs Peers: LTF is good value based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (43.5x).

Price to Earnings Ratio vs Industry

How does LTF's PE Ratio compare vs other companies in the IN Diversified Financial Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
531310 Available Finance
2.5xn/aUS$38.91m
538732 Vibrant Global Capital
5xn/aUS$17.88m
539217 Srestha Finvest
5xn/aUS$12.24m
531735 Prism Finance
2.8xn/aUS$2.43m
LTF 13.4xIndustry Avg. 24.7xNo. of Companies19PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LTF is good value based on its Price-To-Earnings Ratio (13.4x) compared to the Indian Diversified Financial industry average (24.7x).

Price to Earnings Ratio vs Fair Ratio

What is LTF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LTF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.4x
Fair PE Ratio23.5x

Price-To-Earnings vs Fair Ratio: LTF is good value based on its Price-To-Earnings Ratio (13.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LTF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹139.55
₹195.00
+39.7%
16.6%₹237.00₹115.00n/a21
Nov ’25₹148.62
₹197.65
+33.0%
15.2%₹237.00₹133.00n/a20
Oct ’25₹188.12
₹207.15
+10.1%
12.6%₹237.00₹140.00n/a20
Sep ’25₹169.36
₹205.05
+21.1%
12.5%₹230.00₹140.00n/a19
Aug ’25₹176.50
₹205.05
+16.2%
12.5%₹230.00₹140.00n/a19
Jul ’25₹190.10
₹193.39
+1.7%
14.0%₹230.00₹131.00n/a18
Jun ’25₹152.95
₹180.13
+17.8%
13.8%₹210.00₹131.00n/a16
May ’25₹166.65
₹182.63
+9.6%
13.2%₹210.00₹131.00n/a16
Apr ’25₹162.75
₹176.00
+8.1%
14.7%₹209.00₹120.00n/a16
Mar ’25₹170.65
₹176.31
+3.3%
14.6%₹209.00₹120.00n/a16
Feb ’25₹172.25
₹174.82
+1.5%
14.3%₹209.00₹120.00n/a17
Jan ’25₹163.45
₹152.00
-7.0%
13.9%₹185.00₹100.00n/a18
Dec ’24₹151.00
₹149.11
-1.3%
14.6%₹173.00₹100.00n/a19
Nov ’24₹131.85
₹147.21
+11.7%
13.9%₹173.00₹100.00₹148.6219
Oct ’24₹133.10
₹137.88
+3.6%
14.8%₹165.00₹100.00₹188.1216
Sep ’24₹126.45
₹137.56
+8.8%
14.6%₹160.00₹100.00₹169.3616
Aug ’24₹132.60
₹134.00
+1.1%
16.0%₹160.00₹100.00₹176.5015
Jul ’24₹127.70
₹114.29
-10.5%
12.6%₹146.00₹89.00₹190.1014
Jun ’24₹104.85
₹110.93
+5.8%
10.9%₹125.00₹89.00₹152.9514
May ’24₹92.55
₹109.17
+18.0%
8.1%₹125.00₹90.00₹166.6512
Apr ’24₹82.05
₹109.83
+33.9%
8.5%₹125.00₹90.00₹162.7512
Mar ’24₹90.20
₹110.62
+22.6%
8.5%₹125.00₹90.00₹170.6513
Feb ’24₹86.15
₹108.79
+26.3%
9.5%₹125.00₹90.00₹172.2514
Jan ’24₹87.25
₹94.92
+8.8%
9.1%₹110.00₹77.00₹163.4512
Dec ’23₹88.40
₹93.58
+5.9%
8.6%₹110.00₹77.00₹151.0012
Nov ’23₹81.00
₹93.42
+15.3%
8.6%₹110.00₹77.00₹131.8512

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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