INSUBCONTINENT EXCLUSIVE:
UBS has initiated coverage of L-T Finance in the long term with a buy rating and set a price target of Rs 165
The stock gained a percent to Rs 127.25 on Friday while the BSE Sensesex closed 12.81 points (0.03%) up at 41,945.37.
Company FinancialsFor
the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 3630.64 crore, up .54% from last quarter sales of Rs 3611.31
crore and up 11.92% from last year same quarter sales of Rs 3243.99 crore
The company has reported net profit after tax of Rs 591.47 crore in the latest quarter
The company’s top management includes Dr.(Mrs.)Rajani Gupte, Mr.B Prabhakar, Mr.Dinanath Dubhashi, Mr.P V Bhide, Mr.Pavninder Singh, Mr.R
Shankar Raman, Mr.S V Haribhakti, Mr.T Thomas Mathew, Ms.Nishi Vasudeva
Company has Deloitte Haskins - Sells LLP as its auditors
As on 31-12-2019, the company has a total of 2,000,507,960 shares outstanding
Investment RationaleL-T Finance has de-rated in last 12 months due to its exposure to construction finance, renewable projects, IL-FS and
the microfinance segment in East India.The company will be a major beneficiary of the current liquidity crisis in construction finance in
the long term, according to UBS
The valuation of 1.0x FY22 estimated price to book after adjusting for its stake in L-T Mutual Fund is attractive, given its strong rural
presence, funding profile, likely market share gains in housing and infrastructure finance and healthy return on equity of 16% plus, said