L&T Finance has received a Buy rating with a target price of ₹330, representing a 14.6% upside potential from current levels. According to reports from ET Now, the NBFC delivered robust Q4FY26 results across all key parameters, including robust disbursements, profitability, stable margins and improved asset quality. The company's earnings came in marginal above estimates, primarily driven by lower credit costs and stable operational metrics. Multiple brokerages including MOSL and Emkay have maintained their BUY ratings, with Emkay raising its target price to ₹350 from ₹310, while HDFC Securities maintains an ADD rating with a target of ₹300.
The company demonstrated strong operational discipline with Opex-to-AUM remaining stable and credit costs declining due to lower slippages and ECL refresh. As reported by ET Now, the Return on Assets (RoA) is expected to reach approximately 2.8% near term and exceed 3% medium term, supported by tech-led underwriting capabilities. The company's retail scale and AI-led execution are positioned to drive sustained returns in the competitive NBFC sector.
L&T Finance is focusing on continued distribution investments to drive operating leverage, as reported by ET Now. The company's strategy emphasizes retail-focused growth combined with technology integration to enhance underwriting processes. The BSE 500 company's strong fundamentals and growth trajectory have positioned it favorably for the target price achievement, supported by its multi-bagger returns of 12.11% over 3 years.
