'Buy' L&T Finance For Upto 28% Upside, Says Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Stocks To Buy: We maintain our Buy with a target price of Rs 180 (1.5x Sep’26E price/book value).L&T Finance Ltd. has moderated its MFI business growth and expects the industry to grow at 15%-20%. Importantly, this moderation has been done by choice (looking at the stress in the sector) rather than any duress in its own MFI book. It is expanding into Andhra Pradesh and Telangana, which it expects to be growth markets for its MFI business. The company achieved highest-ever tractor disbursements in Oct’24. Management shared the rural cash-flows have been improving and multiple government schemes, which had been paused (prior to and during elections), have been resumed, bringing cash flows back in the hands of customers. L&T Finance’s strategic focus on digital innovation, prime customer acquisition, operational efficiencies, and risk-adjusted growth, will position it well to become a leading retail financial services player. We expect L&T Finance’s MFI business to fare better than most of its MFI peers in the current credit cycle. As investors gain more confidence in the company’s ability to navigate the current MFI credit cycle with MFI credit costs at <4% in FY25, we believe that the stock will be ripe for a rerating and recoup the correction that was seen after its last earnings release. The key risk is the MFI credit cycle continuing beyond FY25, resulting in high credit costs for far longer than currently envisaged..Click on the attachment to read the full report:.JSW Energy Gets A 'Buy' From Motilal Oswal On Strong Pipeline, Opportunistic Acquisitions; Sees 20% Upside.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' L&T Finance For Upto 28% Upside, Says Motilal Oswal

Stocks To Buy: Leveraging AI, digital innovation and customer centricity to shape L&T Finance's future, believes Motilal Oswal

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'Buy' L&T Finance For Upto 28% Upside, Says Motilal Oswal

Stocks To Buy: Leveraging AI, digital innovation and customer centricity to shape L&T Finance's future, believes Motilal Oswal

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