I. Introduction
Recently Angel Broking published their report on L&T Finance share price forecast for the next year. Before I discuss the research report let’s check some more details about the company.
L&T Finance Holdings Ltd (NSE Code: L&TFH) is a company engaged in two-wheeler finance, housing finance, mutual funds, farm equipment finance, wealth management, microfinance, supply chain finance, real estate finance, infrastructure financing, etc. The corporate office of the company is situated at Satacruz (East) in Mumbai. The company has been founded by Shri S V Haribhakti, who is the Non – Executive Chairman of the company right now.
II. Q4 Results and Future Growth Prospects
Recently Mr. Dinanath Dubhashi, MD & CEO of L&T Finance Holdings Ltd appeared on CNBC TV and he discussed the Q4 results of the company and also the strong disbursement and AUM growth of the company. He told that it was their business strategy which they implemented 1 year back that they will grow only those businesses where they feel they are strong. So they have grown their business in wholesale, in housing, and in rural. The interest income on Q4 FY17 has jumped to 1004.5 crores which is a 21% YOY growth considering the same period’s figure of 830.6 crores one year back. The profit has also climbed to 314 crores, which is a 33% growth from last year’s figure.
The company is now focusing on fee income coupled with operating efficiency to drive earnings. Their disbursement is expected to grow at a CAGR of 25% over the next 2-3 years. The company is also expected to deliver an AUM growth of 16%-18% over the next 2-3 years. They will mainly focus on net interest margins (NIM) and fee income.
III. Bullish Sentiment Among Brokers
Considering the rosy future of the company, many brokers are bullish on L&T Finance Holdings. Angel Broking has come up with their L&T Finance share price forecast on 7th July 2017.
IV. Angel Broking’s L&T Finance Share Price Forecast
Before that let’s check the weekly chart of the company once. Chart courtesy Zerodha Kite.
L&T Finance Share Price Forecast By Angel Broking:
- BUY CMP: 148.50 (as of 10:50 on 12th July 2017)
- Target Price 179
- Investment Period 12 Months
V. Chart Analysis
Chart analysis of L&T Finance Holdings Ltd shows a positive trend, indicating the potential for growth and price appreciation.
FAQs on Prediction of L&T Finance Share
L&T Finance is among the top-performing financial stocks in India, offering high returns on investments. The company has grown to become one of the most profitable NBFCs (non-banking financial companies), as well as an integrated wealth management and advisory service provider for institutional and retail investors. Investing in L&T Finance could be a great choice if you are looking for attractive short-term or long-term gains through potential capital appreciation when it comes to equity investing.
Well, forecasting what will happen with any shares can be difficult because there are so many external factors that can influence its price. That said, experts believe that there will continue to be strong demand for quality stocks like this even post covid–19 crisis due to their consistency and sound business fundamentals which paves the way toward meaningful stock growth over time. Additionally, lending businesses have reported stable performance which further indicates why these stocks have been able to weather the current economic downturn relatively better than other sectors. Hence, this makes them more desirable amongst experienced investors who understand how stability brings about sustainable returns.
Yes, you certainly purchase shares directly from the exchange. You just need to open a trading account with a certified investment broker. However, deal only with RBI-approved depository participants. Avoid opting for unregistered intermediaries since they jeopardize hard-earned money through fraudulent Activities.
VI. Conclusion
In conclusion, L&T Finance Holdings Ltd has strong growth prospects and is expected to deliver impressive performance over the next few years. Angel Broking’s share price forecast supports this bullish sentiment, with a recommendation to buy and a target price of 179 over a 12-month investment period.
