HSBC has maintained its ‘Buy’ rating on L&T Finance (LTF) but reduced the target price to ₹180, citing challenges in the microfinance (MFI) space that may disrupt the company’s AUM and EPS growth. The stock currently trades at ₹157.49.
The brokerage has lowered its EPS estimates by 3.5-6.3% over FY25-27, factoring in slower AUM growth, NIM pressure, and higher credit costs. These sector headwinds in microfinance are expected to impact the company’s financial performance in the near term.
Disclaimer: The views in this article are based on HSBC’s analysis and do not constitute investment advice. Investors should consult their financial advisors before making decisions. The author and the publication are not responsible for any investment losses arising from actions taken based on this article.
