L&T Finance shares jump after NBFC reports 33% jump in Q4 disbursements; here’s what brokerages say

L&T Finance share price, L&T Finance share price target: L&T Finance Holdings shares rose on Thursday, April 4, after the non-banking financial company (NBFC) said its retail disbursements grew 33 per cent on a year-on-year basis to Rs 15,030 crore in the March quarter. The stock of Mumbai-headquartered L&T Finance Holdings, which offers a range of financial products and services under the L&T Finance brand, rose as much as 2.9 per cent to Rs 175 apiece on BSE, coming within Rs 4 of a 52-week high of Rs 179 scaled on February 2.

At close, the stock held on to the green with a gain of 1.15 per cent at Rs 172 apiece on BSE.

In a business update released post-market hours on Wednesday, L&T Finance Holdings reported a 29 per cent year-on-year increase in retail disbursements to Rs 54,253 crore in the financial year 2023-24.

The company said its retail loan book was estimated at Rs 80,010 crore at the end of the March quarter, an increase of 31 per cent on a year-on-year basis.

Is it the right time to buy L&T Finance shares?

Analysts are divided on L&T Finance Holdings at the current juncture. Morgan Stanley has maintained an ‘underweight’ rating on L&T Finance Holdings with a target of Rs 129. Its target implies a downside of 24 per cent from the previous close. According to the brokerage, L&T Finance’s robust retail loan book growth and share of retail in total AUM continue to be well on track.

The brokerage awaited more details on parameters such as the company’s margins credit costs asset quality in the fiscal fourth quarter. L&T Finance shares appear to be moving in the right direction for the long term but their valuation looks expensive, according to analysts at the brokerage.

Citi has retained a ‘buy’ call on L&T Finance with a target of Rs 199, indicating an upside of 17 per cent from the previous close.

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