L&T Finance Holdings Ltd - Prudent downsizing for attractive business revival: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking):

"L&T Finance Holdings Ltd (LTFH), promoted by L&T Ltd (64.2%) is a leading NBFC with a diversified lending portfolio. Over the last one year the management has restructured its business model and is focusing on selective segments where it has competitive advantage, simultaneously downsizing some products which were making losses.

Outlook & Valuation: As LTFH operates in multiple segments, we have valued it based on SOTP. We have valued the rural finance segment at 2.5x, while the housing finance and wholesale finance has been valued at 3x and 2x its FY2020E BV. LTFH's AMC arm, L&T MF has been valued at 5% of average AUM. Accordingly, we have arrived at a fair value of Rs179 based on SOTP, and hence recommend BUY on the stock."

Shares of L&T FINANCE HOLDINGS LTD. was last trading in BSE at Rs.149.8 as compared to the previous close of Rs. 148.4. The total number of shares traded during the day was 800947 in over 6787 trades.

The stock hit an intraday high of Rs. 151.7 and intraday low of 148. The net turnover during the day was Rs. 120252402.

Source : Equity Bulls

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