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Goldman Sachs initiates buy on L&T Finance, target price Rs 140

L&T Finance is one of India’s largest non-bank lenders by loan size with a diversified loan portfolio.

Updated: Dec 02, 2019, 08.49 AM IST
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Goldman Sachs has initiated coverage on L&T Finance with a buy rating and target price of Rs 140. Shares of L&T Finance ended up 5.15% at Rs 120.40 on Friday while the BSE Sensex was down 336.36 points at 40,793.81.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 3611.31 crore, up .47% from last quarter sales of Rs 3594.54 crore and up 12.16% from last year same quarter sales of Rs 3219.89 crore. The company has reported net profit after tax of Rs 174.51 crore in the latest quarter.

The company’s top management includes Dr.(Mrs.)Rajani Gupte, Mr.B Prabhakar, Mr.Dinanath Dubhashi, Mr.P V Bhide, Mr.Pavninder Singh, Mr.R Shankar Raman, Mr.S V Haribhakti, Mr.T Thomas Mathew, Ms.Nishi Vasudeva. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2019, the company has a total of 2,000,480,460 shares outstanding.

Investment Rationale

L&T Finance is one of India’s largest non-bank lenders by loan size with a diversified loan portfolio, promoted by the country’s largest industrial conglomerate Larsen & Toubro, said Goldman. A sharp de-rating of L&T Finance shares following its asset quality challenges and second round of business restructuring due to a changed business environment provides an opportunity, said Goldman Sachs.

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