Motilal Oswal Financial Services (MOSL) has reiterated its buy rating on L&T Finance, maintaining a target price of ₹250, indicating strong upside from the current market price of ₹211.39.
The brokerage noted that Q1FY26 was healthy and the company is well-positioned for stronger growth in the second half of the fiscal year. Management expects credit costs to ease to ~2.5% by Q4FY26 and ~2.4–2.5% for the full year.
MOSL estimates a 22% CAGR in total loans and 25% growth in PAT between FY25 and FY27. It projects a consolidated RoA and RoE of 2.7% and ~14%, respectively, by FY27.
FY26 targets include shifting the loan mix and rolling out the Cyclops platform across tractors, personal loans, and SME segments. Structural improvement in profitability and return ratios is expected to kick in from FY27 onwards.
Stock price: ₹211.39 (as of last close)
Disclaimer: The views expressed in this article are those of the brokerage firm. Please consult your financial advisor before making investment decisions.
