L&T Finance Holdings - Q2FY21 - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

L&T Finance reported a moderate set of numbers, however, the rural segment is doing well than expected. NII declined 15% YoY, AUM largely remains Flat YoY /QoQ. AUM decline. PAT declined 62% primarily owing to a plunge in NII and elevated provision cost. Positive for the quarter (a) a pickup in disbursements (b) improved collection efficiency across products and c) Increase provisioning to strengthen the balance sheet.

L&T Fin made additional provisions of Rs. 512 Cr during the qtr. Macroprudential provisions as of Q2FY21 stood at Rs. 1757 Cr (1.8% of AUM). Out of this, Rs 1,079 Cr of provisions are towards Micro Loan book (9.2% of standard Micro Loan book).

L&T Fin currently trades at 0.85x of Q2FY21 Book value, which is inexpensive compared to historical valuation.

Shares of L&T FINANCE HOLDINGS LTD. was last trading in BSE at Rs.64.35 as compared to the previous close of Rs. 63.1. The total number of shares traded during the day was 718588 in over 2880 trades.

The stock hit an intraday high of Rs. 64.6 and intraday low of 62.65. The net turnover during the day was Rs. 45911871.

Source : Equity Bulls

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