Shares of L&T Finance rose over 2% in Wednesday’s session even as HSBC revised its target price downward amid a cautious outlook on the financial sector.
The stock gained 2.24% to Rs 245.57, up Rs 5.37 from its previous close of Rs 240.20. During the session, it traded in a range of Rs 245.25 to Rs 250.78, taking its market capitalization to approximately Rs 60,155 crore.
HSBC maintained a ‘buy’ rating on the stock but reduced its target price to Rs 280 from Rs 370 earlier. The brokerage highlighted that the ongoing Middle East conflict could impact demand, growth, and margins across financial companies.
According to HSBC, early pressure has emerged on the liability side, while asset-side stress could also develop across multiple lending segments going forward. The brokerage has cut its estimates for assets under management (AUM) growth, margins, and earnings per share (EPS) across the sector.
Despite the cautious outlook, HSBC continues to maintain a positive stance on select non-banking financial companies, including L&T Finance.
As of Wednesday’s session, the stock remained in focus with steady buying interest.
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