L&T Finance Ltd
L&T Finance Ltd Fundamental Analysis
L&T Finance Ltd (LTF.NS) shows moderate financial fundamentals with a PE ratio of 27.01, profit margin of 16.81%, and ROE of 11.03%. The company generates $167.3B in annual revenue with strong year-over-year growth of 18.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LTF.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakLTF.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakLTF.NS trades at a premium to fair value.
Growth Score
ExcellentLTF.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakLTF.NS carries high financial risk with limited liquidity.
Profitability Score
WeakLTF.NS struggles to sustain strong margins.
Key Financial Metrics
Is LTF.NS Expensive or Cheap?
P/E Ratio
LTF.NS trades at 27.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LTF.NS's PEG of 6.64 indicates potential overvaluation.
Price to Book
The market values L&T Finance Ltd at 2.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.76 times EBITDA. This is generally considered low.
How Well Does LTF.NS Make Money?
Net Profit Margin
For every $100 in sales, L&T Finance Ltd keeps $16.81 as profit after all expenses.
Operating Margin
Core operations generate 29.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.03 in profit for every $100 of shareholder equity.
ROA
L&T Finance Ltd generates $2.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
L&T Finance Ltd generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
L&T Finance Ltd generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
LTF.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.010
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How LTF.NS Stacks Against Its Sector Peers
| Metric | LTF.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.01 | 19.09 | Worse (Expensive) |
| ROE | 11.03% | 843.00% | Weak |
| Net Margin | 16.81% | 3730.00% | Weak |
| Debt/Equity | 3.72 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.00 | 661.68 | Weak Liquidity |
| ROA | 2.21% | -21651.00% (disorted) | Weak |
LTF.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews L&T Finance Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.78%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
32.57%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-754.15%
Industry Style: Value, Dividend, Cyclical
Declining