L&T Finance Faces Technical Shift Amid Declining Institutional Stake and Flat Performance

Mar 27 2025 08:03 AM IST
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L&T Finance Ltd has recently experienced a change in its evaluation, reflecting shifts in technical trends. The company's Q3 FY24-25 results showed a decline in operating profit, while institutional investor participation decreased. Despite a negative return over the past year, profits increased, and the stock trades at a premium compared to peers.
L&T Finance Ltd, a prominent player in the Finance/NBFC sector, has recently undergone an adjustment in evaluation, reflecting changes in its underlying technical trends. The stock's technical indicators have shifted, moving from a mildly bullish stance to a sideways trend, suggesting a period of consolidation without clear momentum.

Key financial metrics indicate that the company has experienced flat performance in its latest quarterly results for Q3 FY24-25, with operating profit showing a decline at an annual rate of -2.83%. Additionally, institutional investor participation has seen a reduction, with a decrease in their stake by -1.58% over the previous quarter, now collectively holding 17.47% of the company. This shift may reflect a cautious approach from larger investors, who typically have the resources to analyze company fundamentals more thoroughly.

Despite a return of -2.36% over the past year, L&T Finance has reported a 13% increase in profits, with a price-to-earnings growth (PEG) ratio of 1.2. The stock is currently trading at a premium compared to its peers' average historical valuations, with a return on equity (ROE) of 10.6 and a price-to-book value of 1.6.

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