Our 7th company in the Series of Best Stocks Below Rs. 100 is L&T Finance Holdings Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
L&T Finance Holdings Limited is a non-banking financial institution-core investment company.
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹20,945cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 21.57
Sector PE Ratio: 27.35
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.10
Sector PB Ratio: 2.32
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0%
Sector Dividend Yield : 0.53%
Dividend Yield of this company is zero. No Dividend is provided by this company.
ROE: 5.17%
ROCE: 12.03%
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 14,305.71 | 970.94 |
| 2020 | 14,476.75 | 1,700.17 |
| 2019 | 13,368.82 | 2,226.30 |
| 2018 | 10,266.26 | 1,254.68 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 89,976.41 | 94,615.93 | 92,379.05 | 76,142.20 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 89,976.41 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 5,411.72 | 2,082.05 | -11,734.65 | -15,722.96 |
Debt Level: L&T Finance Holdings Ltd debt to equity ratio (467.2%) is considered high.
Reducing Debt: L&T Finance Holdings Ltd debt to equity ratio has reduced from 613% to 467.2% over the past 5 years.
Debt Coverage: L&T Finance Holdings Ltd debt is not well covered by operating cash flow (6.2%).
Interest Coverage: Insufficient data to determine if L&T Finance Holdings Ltd interest payments on its debt are well covered by EBIT.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 63.59% | 8.79% | 1.62% | 4.91% | 21.10% |
| Mar 2021 | 63.62% | 10.60% | 0.78% | 5.02% | 19.99% |
| Dec 2020 | 63.62% | 9.68% | 0.33% | 5.00% | 21.37% |
| Sep 2020 | 63.65% | 9.36% | 0.23% | 4.95% | 21.80% |
Above table showing there is no big change in Promotors holding which is 63.59% in June 2021. FIIs invested in June 2021 with 8.79% and retail investor is 21.10%.
Now We’ll check the return of the company, This company started from Rs. 44.78 at 17 Aug 2011. This company given 43.30% returns in last 1 year from 2020 to 9 Sep 2021.
Investment Checklist for L&T Finance Holdings Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 33% per year for the next 3 years
- They do not pay a dividend
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- They have sufficient analyst coverage
- No concerning events detected
- Revenue is meaningful (₹72B)
- Market cap is meaningful (₹206B)
- Debt is not well covered by operating cash flow
- Significant insider selling over the past 3 months
- Shareholders have been diluted in the past year
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 7th company in the Series of Best Stocks Below Rs. 100 . We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss
