Goldman Sachs has reaffirmed its ‘Buy’ rating on L&T Finance, setting a target price of ₹202, reflecting a potential upside of about 10%. The report highlights several growth levers, including a well-controlled MFI business and a notable pickup in the tractor business, which now accounts for 16% of loans as of Q1.
The company stands to benefit from anticipated rate cuts, as 77% of its loan book is at a fixed rate, with the remaining 23% on floating terms. Management has maintained its guidance for 25% growth and aims to deliver ROAs of 3% and ROEs of 15% over the next 24 months.
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