L&T FINANCE HOLDINGS
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