L&T FI­NANCE HOLD­INGS

Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended L&T Fi­nance Hold­ings in is­sue no. 7 dated March 6-19, 2017, un­der the ‘Anal­y­sis’ sec­tion when the scrip was trad­ing at ₹116.25. Our rec­om­men­da­tion was based on the com­pany’s strong fi­nan­cials, the gov­ern­ment’s af­ford­able hous­ing ini­tia­tive and a boost to the re­new­able en­ergy sec­tor.

L&T Fi­nance Hold­ings is a non-bank­ing fi­nan­cial in­sti­tu­tion-core in­vest­ment com­pany. The com­pany op­er­ates in re­tail, mid-mar­ket fi­nance, whole­sale fi­nance, hous­ing and in­vest­ment man­age­ment seg­ment, among other busi­nesses, of­fer­ing a wide range of fi­nan­cial prod­ucts. On the fi­nan­cial front, L&T Fi­nance posted a 20.78 per cent rise in its rev­enue from ₹13.09 crore in Q1FY17 to ₹15.81 crore in Q1FY18. The com­pany’s profit be­fore de­pre­ci­a­tion and tax (PBDT) stood at ₹8.41 crore in Q1FY18, up by a huge 94.68 per cent on a YOY ba­sis. The profit af­ter tax of the com­pany stood at ₹8.20 crore, an im­pres­sive in­crease of 180.82 per cent in the first quar­ter of FY18 on a yearly ba­sis.

How­ever, on an an­nual ba­sis, the com­pany’s rev­enue de­creased by 20.35 per cent to ₹277.58 crore in FY17 from ₹348.50 crore in FY16. The com­pany’s PBIDT stood at ₹245.16 crore in FY17, down by 33.42 per cent as against PBDT of ₹368.23 in FY16. The com­pany’s profit af­ter tax stood at ₹248.66 crore, down by 34.22 per cent in FY17 from ₹378.04 crore in FY16.

Af­ter our rec­om­men­da­tion, the share price of

L&T Fi­nance Hold­ings in­creased by over 46 per cent. The stock has reached its peak for the time be­ing, thus we had rec­om­mended in­vestors to

Book Profit.

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