L&T Finance zooms 94% from January low; stock trades at record high

Thus far in the month of September, the stock price of L&T group NBFC has outperformed the market by surging 16 per cent, as compared to 3.8 per cent rise in the BSE Sensex.

L&T Finance share price today

 

Shares of L&T Finance (LTF) hit a new high of ₹250.95, up 3 per cent on the BSE in Thursday’s intra-day on healthy business outlook. 

 

Thus far in the month of September, the stock price of L&T group non-banking finance company (NBFC) has outperformed the market by surging 16 per cent, as compared to 3.8 per cent rise in the BSE Sensex. LTF stock has zoomed 94 per cent from its 52-week low of ₹129.15 touched on January 13, 2025.

 

Meanwhile, thus far in the calendar year 2025, LTF has rallied 80 per cent, as against 5.5 per cent rise in the benchmark index. 

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What's driving L&T Finance stock price?

 

LTF is among the 10 largest finance companies in India, although its market share in the overall financial sector is modest at 0.4 per cent-0.5 per cent. LTF is one of the leading national players in rural business, two-wheelers, and farm equipment finance. The company has a granular and diversified loan book, of which 97 per cent is toward the retail segment. Its biggest lending exposures are in rural and microfinance finance, farmer finance and two-wheeler finance, which accounts for about 55 per cent of its total lending.

 

Analysts at Motilal Oswal Financial Services (MOFSL) expect LTF to sustain its growth momentum with healthy traction in Q2, followed by a strong acceleration in H2, supported by festive season demand.

 

LTF 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 is industry-wide stress in non-MFI retail segments like unsecured business loans and micro-LAP, MOFSL expect the stress to subside within the next few quarters.

 

Meanwhile, since August 14, LTF has rallied 24 per cent after S&P Global Ratings revised upward its assessment of the stand-alone credit profiles (SACP) of the company by one notch due to likely improvement in their risk adjusted capital (RAC) ratios. 

 

S&P Global Ratings expects India's sound economic fundamentals to underpin growth momentum over the next two to three years. India's financial institutions will continue to ride the country's good economic growth momentum. These entities will benefit from their domestic focus and structural improvements in the system such as in the recovery of bad loans. 

LTF will maintain its strengthened capital levels over the next 12-24 months. The rating agency estimates LTF's RAC ratio will be 15 per cent-20 per cent over the next two years, benefiting from the improving economic conditions in India. Its RAC ratio was 19.7 per cent as of March 31, 2025.

 

Meanwhile, S&P Global Ratings expect LTF's return on assets to improve to 2.6 per cent by fiscal 2028, from 2.4 per cent for fiscal 2025, despite a decline in yields. The improvement will be supported by a reduction in credit cost and lower operating expenses. The rating agency expects credit cost to decline to 2.0 per cent by fiscal 2028, from 2.6 per cent for fiscal 2025. Its cost-to-income ratio will improve to about 37 per cent, from 40 per cent for the same period.