Mehabe score: 3 G Factor: 3 Piotski Score: 4 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 4.
Description
L&T Finance Holdings is registered with the Reserve Bank of India (RBI) as a Systemically Important Non- Deposit Accepting Core Investment Company (NBFC-CIC). As an NBFC-CIC, the Company is a primary holding company, holding investments in its subsidiaries and other group companies and carries out only such activities as are permitted under the guidelines issued by RBI for NBFC-CICs..(Source : 202003-01 Annual Report Page No:94)Site:L&TFHMain Symbol:L&TFH
The 52 week high is at 113.40 and the 52week low is at 51.71
Price Chart
P/E Chart
Sales and Margin
Strengths
– ‘s median sales growth is 19.73% of last 10 years
Weakness
– has low interest coverage ratio.
– has a low return on equity of 11.34% for last 3 years.
-Dividend payout has been low at 6.53% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 24.8x. SBI Cards trades at the industry’s max P/E of 94.47x. L&TFH trades at a P/E of 23.8x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 6.0. L&TFH has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is -2.0%. The max 1- month return was given by Bajaj Holdings: a return of 6.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 3415.0 cr compared to Rs 3355.0 cr for period ended Mar 2020, a rise of 1.8%
Operating Profits reported at Rs 2178.0 cr for period ended Mar 2021 vis-vis 2209.0 for period ended Mar 2020 .
Operating Margins contracted -206.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.08 compared to Rs 1.18 for previous quarter ended Dec 2020 and Rs 1.57 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 13678.0 cr for period ended Mar 2021 vis-vis sales of Rs 14548.0 cr for the period ended Mar 2020, a fall of 6.4%. The 3 year sales cagr stood at 10.2%.
Operating margins shrank to 60.0% for period ended Mar 2021 vis-vis 71.0% for period ended Mar 2020, contraction of 1100.0 bps.
Net Profit reported at Rs 971.0 cr for period ended Mar 2021 vis-vis sales of Rs 1700.0 cr for the period ended Mar 2020, falling 75.1%.
Company reported a poor Net Profit CAGR of -8.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5464.0 cr for period ended Mar 2021 vis-vis Rs 2162.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -43% vis-vis a compounded profit growth of -8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 10.6% vis-vis 9.36% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 19.91% vis-vis 21.72% for Dec 2020
Conclusion
– ‘s median sales growth is 19.73% of last 10 years – has low interest coverage ratio.
– has a low return on equity of 11.34% for last 3 years.
-Dividend payout has been low at 6.53% of profits over last 3 years
