L&T Finance Limited (LTF IN): Buy: Sound numbers; strong execution

研报英文原文证据摘录

L&T Finance Limited (LTF IN): Buy: Sound numbers; strong execution

owth momentum across 52-WEEK PRICE (INR)

key segments. The increase in net interest income estimates could be partially offset by

410.00

lower fee income estimates due to any possible insurance commission fee reduction

given regulatory change. We build higher operating expenses for FY26-29e, as the 290.00

company is in the investment phase for scaling its tech capabilities and newer businesses 170.00

07/25 01/26 07/26

expansion. We are building more conservative credit cost estimates than management Target price: 380.00

guidance over FY27-29e. This led to our FY27-29e EPS estimates increasing 2-4%. High: 335.60 Low: 195.75 Current: 324.70

Source: LSEG IBES, HSBC estimates

Key observations from 1QFY27 results:

◆ Disbursements grew 36% y-o-y driven by higher growth in consumer, two- Abhishek Murarka*

Senior Analyst, India Financials

wheeler, and rural business loans. This led to c27% y-o-y growth in AUM. HSBC Securities and Capital Markets (India) Private Limited

abhishek.murarka@hsbc.co.in

◆ NIM was impacted due to excess liquidity and higher cost of borrowing. This was +91 73049 07567

offset by higher fee income. Lower credit cost led to ROA expansion of c8bp q-o-q. Rahil Shah*

Analyst, India Financials

Highlights from earnings call: LTF reiterated its new ‘Lakshya 2031’ goals with AUM HSBC Securities and Capital Markets (India) Private Limited

growth target of 20% plus CAGR, credit cost <2%, ROA of 3.0-3.2%, and ROE of 16- rahil.shah@hsbc.co.in

+91 22 6628 3719

18%. LTF would focus on accelerating its high yield loans segments including gold loans,

Gaurav Sharma*

micro-LAP, personal loans, and rural business loans over next few years. It plans to add Analyst, India Financials