Brokerages Maintain Bullish Stance On L&T Finance On In-Line Business Update For June Quarter

L&T Finance released its business update for the first quarter of FY25. 

What Happened: L&T Finance's retail disbursements grew by 33% year-on-year to ₹14,830 crore from ₹11,192 crore a year ago. The company's urban finance grew 44.25% to ₹6,040 crore.

Rural business finance went up 27.90% to ₹5,770 crore, small and medium enterprise (SME) finance rose 61.44% to ₹980 crore, while the company's retail loan book jumped 31% to ₹84,440 crore. 

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Brokerage Views: UBS maintained its "buy" call with a target price of ₹230. In the Q1FY25 business update, the increase in retail disbursements which grew 33% year on year and a rise of 31% in assets under management (AUM) were in-line with the brokerage’s expectations. 

Microfinance, which was up 28% and urban retail disbursements which were up 44%, remained strong but SME was weak, the research firm said. 

Citi also maintained "buy" call with a target price of ₹221. The brokerage said retail disbursements and AUM growth sustained quarter on quarter despite seasonality. The share of retail AUM has improved to 95% while wholesale AUM has gone down, it added. The brokerage said the consolidated return on asset and return on equity profile of the company is likely to improve quarter on quarter.  

Price Action: Shares of L&T Finance were up 1.38% to ₹191.30 on Thursday morning. 

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