L&T Finance rises over 5.20% after firm reports above-estimate Q4 numbers; know Morgan Stanley's target

L&T Finance Share Price: L&T Finance Holdings jumped to over 5.20 per cent on BSE on Monday (April 29, 2024) after the firm reported above-estimate numbers in its fourth-quarter results.

The stock of L&T Finance that opened at Rs 164.00 jumped to the day's high of Rs 172.30 on Monday, a 5.22 per cent rise from its previous close of Rs 163.75.

L&T Finance shares closed trading higher by 3.15 per cent, or Rs 5.15, at Rs 168.90 each on Monday.   

L&T Finance Holdings Q4FY24 YoY consolidated results

The finance company's net interest income rose by 12.50 per cent to Rs 1,986.7 crore in the fourth quarter compared to Rs 1,765.8 crore Year-on-Year (YoY).

It was above Zee Business research estimates of Rs 1,955 crore. 

The firm's profit after tax (PAT) was up by 10.5 per cent to Rs 553.9 crore in the fourth quarter in comparison to Rs 501.1 crore in the same quarter last year.

It was below analyst estimates of Rs 670 core.

Its gross non-performing assets (GNPA) for Q4 were 2.84 per cent, down from 2.95 per cent in the previous quarter. It was below the estimates of 2.9 per cent. 

Its net non-performing assets (NNPA) were 0.62 per cent in the quarter under review compared to 0.64 per cent quarter-on-quarter (QoQ), below estimates of 0.64 per cent. 

Morgan Stanley on L&T Finance 

Morgan Stanley has maintained an 'underweight' call on L&T Finance with a share price target of Rs 129.

It says that PPOP missed MSe by four per cent on lower NII and higher operating expenses.

A 17 per cent PAT miss was due to additional provisions on security receipts.

Lower tractor disbursements (-25% QoQ), a drop in collection efficiency, and likely higher overall slippages were key discussion points.