L&T Finance Ltd is a leading non-banking financial company (NBFC) and a subsidiary of Larsen & Toubro Limited, one of India’s most respected engineering conglomerates. The company operates across rural finance, housing finance, infrastructure finance, and gold loans, with a strong presence in semi-urban and rural India. Backed by L&T’s brand trust and governance standards, L&T Finance has built a diversified loan book with improving asset quality and consistent profitability. Despite recent underperformance in stock price, its fundamentals remain solid, making it a candidate for long-term investors seeking exposure to India’s credit expansion story. This article provides a data-backed outlook on the L&T Finance share price target 2026–2030.
L&T Finance Ltd: Company Overview
- Founded: 2006 (as part of L&T Group)
- Headquarters: Mumbai, Maharashtra
- Key Segments: Rural & Agri Finance, Housing Finance, Infrastructure Finance, Gold Loans
- Strategic Edge: Backed by L&T Group; strong risk management; focus on underserved credit markets
- Ownership: 66.03% held by Larsen & Toubro Ltd → effectively a promoter-controlled NBFC
L&T Finance benefits from L&T’s operational discipline and access to low-cost funding. Its recent acquisition of Paul Merchants’ gold loan business (Feb 2025) expands its product diversification and customer reach.
L&T Finance Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹289.00 |
| Market Capitalization | ₹72,423.64 Cr |
| No. of Shares Outstanding | 250.30 Cr |
| 52-Week High / Low | ₹335 / ₹245 |
| P/E Ratio (TTM) | 26.02 |
| P/B Ratio | 2.70 |
| EPS (TTM) | ₹11.12 |
| Book Value (TTM) | ₹107.11 |
| ROE | 10.85% |
| ROCE | 8.71% |
| Dividend Yield | 0.95% |
| Face Value | ₹10 |
| Operating Revenue | ₹15,912.13 Cr |
| Net Profit | ₹2,617.81 Cr |
| Sales Growth (YoY) | 17.22% |
| Profit Growth (YoY) | 17.0% (estimated from TTM vs FY24) |
| Promoter Holding | 66.03% |
L&T Finance Ltd Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹310 – ₹350 |
| 2027 | ₹330 – ₹380 |
| 2028 | ₹350 – ₹420 |
| 2029 | ₹370 – ₹460 |
| 2030 | ₹390 – ₹500 |
L&T Finance Ltd Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹310 | ₹350 |
L&T Finance reported 17.22% sales growth and ~17% profit growth in FY2025, driven by strong disbursements in rural and housing segments. Trading at a P/E of 26x and P/B of 2.7x, the stock reflects a premium for its L&T backing and clean balance sheet. A 2026 target of ₹310–₹350 assumes continued loan book expansion and stable asset quality.
L&T Finance Ltd Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹330 | ₹380 |
The integration of the gold loan business and deeper penetration in Tier-2/3 cities could support earnings growth. If EPS reaches ₹12.50–₹13.50 by FY27 and P/E holds at 26–27x, the 2027 range of ₹330–₹380 is realistic.
L&T Finance Ltd Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹350 | ₹420 |
By 2028, benefits from scale, digital underwriting, and higher-margin products should reflect in profitability. Assuming EPS of ₹13.50–₹15.00 and P/E of 26–28x, the ₹350–₹420 band is justified.
L&T Finance Ltd Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹370 | ₹460 |
Long-term tailwinds include India’s rising credit-to-GDP ratio and the government’s focus on financial inclusion. Risks include interest rate volatility and competition from banks. Using a P/E of 27–29x on projected EPS (~₹14–₹16), the 2029 target is ₹370–₹460.
L&T Finance Ltd Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹390 | ₹500 |
Over a five-year horizon, L&T Finance’s value lies in its brand trust, L&T backing, and scalable NBFC model. A terminal P/E of 28–30x on FY30 EPS (~₹14–₹16.70) supports the ₹390–₹500 range.
L&T Finance Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (L&T Group) | 66.03% |
| Domestic Institutional Investors (DII) | 15.33% |
| Public & Retail | 11.98% |
| Foreign Institutional Investors (FII) | 6.66% |
| Others | 0.00% |
High promoter holding ensures strategic alignment with L&T’s long-term vision.
L&T Finance Ltd: Strengths vs Risks
Strengths:
- Backed by India’s most trusted engineering conglomerate (L&T)
- Diversified lending portfolio with strong rural focus
- Consistent profitability and improving ROE (10.85%)
- Recent gold loan acquisition enhances product mix
Risks:
- ROCE (8.71%) is modest for an NBFC—limits capital efficiency
- Low dividend yield (0.95%) reduces income appeal
- P/B of 2.7x leaves a limited margin for execution misses
- Exposure to agricultural income cycles and monsoon dependence
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Moderate (mid-cap NBFC) |
| Dividend/Income Potential | Minimal (0.95% yield) |
| Best For | Quality-focused investors seeking L&T-backed financial exposure |
- Broader NBFC sector rotation
- Concerns over rising competition in rural finance
- Modest ROCE limiting re-rating potential
Final Verdict
L&T Finance Ltd combines the credibility of the L&T brand with a scalable NBFC model focused on India’s underserved credit markets. While not a high-growth story, its disciplined lending and improving profitability make it a reliable compounder. Our L&T Finance share price target 2026–2030 (₹310 to ₹500) reflects steady appreciation—not speculation.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – L&T Finance Consolidated Page (FY2025 + TTM)
- Finology Ticker – LTF Financial Ratios & Valuation
- L&T Finance Investor Presentation (Q3 FY26, Jan 2026)
- BSE India – Annual Report FY2025
- Ministry of Corporate Affairs – Demerger Scheme (2021)
