L&T Finance Holdings shares volatile after multiple block deals; Bain Capital likely seller

Shares of L&T Finance Holdings traded volatile during the early trade on Tuesday, September 12, after multiple block deals of seven crore shares took place. Around 2.8 per cent of the company's equity changed hands in the block deals. As per reports, Bain Capital was expected to sell a 2.62 per cent stake in the company via a block deal at a floor price of Rs 129.72 per share. The deal size was estimated at Rs 850 crore.

As of 10:15 a.m., L&T Finance Holdings was down over half a per cent at Rs 129.95 apiece. The stock climbed as much as 3.2 per cent initially and then pared gains. The market capitalisation of the company stood at 32,267.49 crore.

What do analysts suggest?

Zee Business panellist Avinash Gorakshakar said that L&T Finance Holdings' business model is robust for the long term, and June quarter numbers have seen a good recovery. He suggests holding the stock and buying on corrections with a medium-term view.

Brokerage Anand Rathi has recommended buying shares of L&T Finance Holdings with a target price of Rs 160 apiece.

"We tweak our estimates and retain our buy recommendation. At our 12-month target price, the stock trades at undemanding valuations of 1.7x FY24e BV and 1.5 times FY25e book value for an expected 2 per cent plus returns on assets in FY25," the report read.

Emkay Global has also given a 'buy' call on the stock with a target price of Rs 150 apiece. "With its large customer franchise and geographical presence, coupled with tech and analytical capabilities, the company appears better positioned to continue improving its profitability. We reiterate our buy," the brokerage said in its report.

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