L&T Financial Holdings net profit up 41% at ₹640 crore

How L&T Finance Holdings Made a Huge Profit in Q3

L&T Finance Holdings (LTFH) reported a 41% increase in consolidated net profit at ₹640 crore for the third quarter ended December 31, 2023. How did they do it? Read on to find out.

LTFH's Strategy: Focus on Rural and Housing Segments

LTFH's rural and housing segments contributed 62% of the total loan book and 72% of the profit after tax. The rural segment grew by 25% year-on-year, while the housing segment grew by 12%.  LTFH also improved its asset quality and reduced its gross non-performing assets ratio to 4.16%.

LTFH Outlook: Positive and Confident

LTFH's managing director and CEO, Dinanath Dubhashi, said that the company is confident of achieving its medium-term return on equity target of 18-20%.

He also said that LTFH is well-positioned to capitalize on the opportunities in the rural and housing markets, as well as the infrastructure and renewable energy sectors.

LTFH's Stock: A Good Investment Option?

LTFH's stock has gained over 50% in the past year, outperforming the Nifty Financial Services index.  Analysts are bullish on LTFH's prospects, citing its strong growth, profitability, and asset quality.  LTFH's stock is currently trading at ₹140.50, with a consensus target price of ₹165.00.

LTFH's Stock: The Secret Behind Its Success

LTFH's strong growth in retail and an accelerated rundown in wholesale, which make the portfolio granular and improve consolidated profitability LTFH's sustainable moats in rural, two-wheeler and farm equipment segments, which offer high growth potential and low competition

LTFH Summary: A Quick Recap

1. LTFH's net profit increased by 41% to ₹640 crore. 2. LTFH's rural and housing segments drove the growth and profitability. 3. LTFH's asset quality improved and its gross NPA ratio decreased to 4.16%. 4. LTFH's stock has gained over 50% in the past year and analysts are optimistic about its future. 5. LTFH is confident of achieving its medium-term ROE target of 18-20%.