'Buy' L&T Finance Maintains Motilal Oswal, Sees 23% Upside — Here's Why

Supported by digital partnerships with major players such as Amazon and PhonePe, L&T Finance is poised for a potential rerating and sustainable earnings growth once the near-term headwinds in the MFI business subside..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.L&T Finance Ltd. has invested in process automation and customer journeys. This, along with large partnerships with digital behemoths, should lead to stronger and more sustainable retail loan growth. While there are industry-wide signs of stress in non-MFI retail segments like two-wheelers, tractors, and personal loan, we expect the stress to subside within the next few quarters. Stress in the microfinance sector is a near term headwind, which the company will navigate and come out stronger. L&T Finance's relatively better navigation of the MFI crisis and diversification into non-leveraged MFI markets demonstrate its resilience and adaptability. Supported by digital partnerships with major players such as Amazon and PhonePe, L&T Finance is poised for a potential rerating and sustainable earnings growth once the near-term headwinds in the MFI business subside. L&T Finance can deliver a PAT CAGR of ~22% over FY24-FY27E, which will result in a RoA/RoE of 2.7%/14.1% in FY27E. We reiterate our Buy rating on the stock with a target price of Rs 170 (based on 1.4x Sep’26 P/BV).Key risks:stress in microfinance lingering beyond the next two-three quarters, asset quality deterioration in relatively vulnerable retail segments such as personal loan and two-wheelers, and near-term compression in net interest margin and fee income..Click on the attachment to read the full report:.Sanathan Textiles Gets 'Buy' Rating As ICICI Securities Initiates Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' L&T Finance Maintains Motilal Oswal, Sees 23% Upside — Here's Why

Benefits of Cyclops and Nostradamus projects will be visible from H2 FY26, says Motilal Oswal.

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