L&T Finance was listed on the BSE on August 12, 2011. In the last five years, its stock has given a massive return of around 250% to its investors. Will L&T Finance continue to provide such great returns in the future as well? Let’s explore L&T Finance’s growth potential and the L&T Finance share price target 2025 to 2050 in this article.
L&T Finance is a part of the Larsen & Toubro (L&T) Group. It is one of the biggest non-banking financial companies (NBFCs) in India and provides a wide range of financial products and services. The company was established in 2008 and offers services in retail finance, rural finance, housing finance, and infrastructure finance. L&T Finance has a strong presence in both urban and rural India through a large network of branches and digital platforms. The company is based in Mumbai. It has over ₹90,000 crore in assets under management (AUM) as of FY2024.
L&T Finance Business Model
Retail Financing Business: L&T Finance focuses on retail lending by offering loans to individuals and small businesses across rural and urban India. The company’s key retail segments include farm equipment finance, two-wheeler loans, micro loans, home loans, and consumer loans.
Infrastructure Financing Business: L&T Finance also provides long-term project finance to sectors like renewable energy, roads, and transmission. It leverages its parent L&T’s deep sector expertise and risk assessment capabilities to structure customized financial solutions.
Asset Management and Fee-Based Services: The company earns additional income through the distribution of third-party financial products. These services offer capital-light revenue streams, improving overall return on equity and strengthening customer relationships.
L&T Finance Fundamental Analysis
Stock Name
L&T Finance Ltd.
NSE Symbol
LTF
Market Cap
₹ 48,159 Cr.
52W High
₹ 195
52W Low
₹ 129
Stock P/E
18.2
Book Value
₹ 102
Dividend Yield
1.42 %
ROCE
8.71 %
ROE
10.8 %
Face Value
₹ 10.0
Industry PE
25.6
Price to book value
1.88
Debt to equity
3.61
PEG Ratio
1.97
Quick ratio
5.16
L&T Finance Shareholding Pattern
Shareholders
March 2023
March 2024
March 2025
Promoters
66.11%
65.86%
66.24%
FIIs
11.35%
11.04%
5.48%
DIIs
6.58%
8.69%
13.28%
Public
15.96%
14.39%
15.01%
No. of Shareholders
7,08,237
7,11,555
8,46,682
Key Factors Driving L&T Finance Future Growth
Strong Growth in Rural and Retail Lending: L&T Finance is seeing strong demand in rural and semi-urban India, particularly in its targeted retail segments such as farm equipment financing, two-wheeler loans, and micro loans. With rural consumption increasing and better monsoon forecasts, the rural lending industry is set for accelerated growth, resulting in a consistent increase in disbursements.
Strategic Shift Towards Retail-Focused Model: LTF has strategically shifted from a wholesale-heavy portfolio to a retail-focused book. Retail now accounts for a significant portion of the company’s loan assets, resulting in higher yields, lower risk concentration, and improved asset quality. This shift is expected to support long-term growth and profitability.
Digital and Data-Led Lending Model: The company is using digital tools and analytics to streamline loan processing, shorten turnaround times, and improve the customer experience. This “Digital First” approach promotes scalable and cost-effective growth, particularly in rural and underbanked areas.
Pros of L&T Finance
Strong Profit Growth: L&T Finance’s profits have grown at 46% CAGR over the last three years.
Low P/B Ratio (Undervalued Stock): L&T Finance’s Price to Book Value (P/B) ratio is 1.88, which shows that its stock is trading close to its intrinsic value and may be undervalued.
Low PE Ratio Compared to Peers: L&T Finance PE ratio is18.2, which is lower than the industry average of 25.6, making it relatively undervalued and potentially a good investment opportunity.
Increase in Institutional Confidence: DIIs have increased their holding to 13.28% in March 2025 from 12.17% in December 2024, while FIIs have increased their holding to 5.48% in March 2025 from 5.30% in December 2024, indicating a strong institutional confidence in the company’s future growth prospects.
Cons of L&T Finance
Poor Sales Growth – L&T Finance has delivered a poor sales growth of 2% over the last five years.
Low Return on Equity (ROE): L&T Finance’s 5-year average ROE is 6.14%, which shows that L&T Finance is not using shareholders’ funds efficiently to generate profits.
Low Return on Capital Employed (ROCE): L&T Finance’s 5-year average ROCE is 7.31%, which shows that L&T Finance is not using its capital efficiently to generate profits.
L&T Finance Ltd Balance Sheet
Particulars
March 2023
March 2024
March 2025
Equity Capital
2,480
2,489
2,495
Reserves
19,049
20,950
23,069
Borrowings
83,105
76,603
92,372
Other Liabilities
1,706
2,652
2,447
Total Liabilities
106,339
102,694
120,384
Fixed Assets
553
519
641
CWIP
5
36
45
Investments
14,366
12,385
11,876
Other Assets
91,415
89,754
107,822
Total Assets
106,339
102,694
120,384
L&T Finance Share Price Target 2025
By the end of 2025, the L&T Finance share price is expected to be around ₹240 in normal conditions. In a bear market, it might be ₹170, and in a bull market, it may go up to ₹300.
L&T Finance Share Price Target 2025
Rupees (₹)
Bear Market
170
Normal Market
240
Bull Market
300
L&T Finance Share Price Target 2026
In 2026, the L&T Finance share price is expected to be around ₹290 in a normal situation. In a bear market, it might be ₹190, and in a bull market, it may cross ₹390.
L&T Finance Share Price Target 2026
Rupees (₹)
Bear Market
190
Normal Market
290
Bull Market
390
L&T Finance Share Price Target 2027
According to our analysis, the L&T Finance share price is expected to be around ₹350 in 2027. In a bear market, it might be ₹210, and in a bull market, it may cross ₹500.
L&T Finance Share Price Target 2027
Rupees (₹)
Bear Market
210
Normal Market
350
Bull Market
500
L&T Finance Share Price Target 2028
According to our analysis, the L&T Finance share price may trade near ₹400 by 2028; bearish conditions could pull it down to ₹230, while a strong bull run might lift it to ₹660.
L&T Finance Share Price Target 2028
Rupees (₹)
Bear Market
230
Normal Market
400
Bull Market
660
L&T Finance Share Price Target 2029
Under normal conditions, the L&T Finance share price might hit ₹500 by 2029. A bearish trend could lower it to ₹250, whereas a bullish surge could raise it to ₹850.
L&T Finance Share Price Target 2029
Rupees (₹)
Bear Market
250
Normal Market
500
Bull Market
850
L&T Finance Share Price Target 2030
In a normal situation, the L&T Finance share price is projected to be approximately ₹600 in 2030. In a bear market, the value may be as low as ₹280, while in a bull market, it may rise to ₹1100.
L&T Finance Share Price Target 2030
Rupees (₹)
Bear Market
280
Normal Market
600
Bull Market
1100
L&T Finance Share Price Target 2035
By 2035, the L&T Finance share price is projected to be around ₹1200 under normal conditions. In adverse markets, the price could fall to ₹400, while favorable conditions might push it up to ₹3300.
L&T Finance Share Price Target 2035
Rupees (₹)
Bear Market
400
Normal Market
1200
Bull Market
3300
L&T Finance Share Price Target 2040
Under normal conditions, the L&T Finance share price might hit ₹2400 by 2040. A bearish trend could lower it to ₹600, whereas a bullish surge could raise it to ₹9900.
L&T Finance Share Price Target 2040
Rupees (₹)
Bear Market
600
Normal Market
2400
Bull Market
9900
L&T Finance Share Price Target 2050
In 2050, the L&T Finance share price is expected to be around ₹8200 in a normal situation. In a bear market, it might be ₹1850, and in a bull market, it may go up to ₹59,000.
L&T Finance Share Price Target 2050
Rupees (₹)
Bear Market
1850
Normal Market
9600
Bull Market
59,000
Quick Summary of L&T Finance Share Price Target 2025 to 2050
Years
Target Price
L&T Finance Share Price Target 2025
₹170 to ₹300
L&T Finance Share Price Target 2026
₹190 to ₹390
L&T Finance Share Price Target 2027
₹210 to ₹500
L&T Finance Share Price Target 2028
₹230 to ₹660
L&T Finance Share Price Target 2029
₹250 to ₹850
L&T Finance Share Price Target 2030
₹280 to ₹1100
L&T Finance Share Price Target 2035
₹400 to ₹3300
L&T Finance Share Price Target 2040
₹600 to ₹9900
L&T Finance Share Price Target 2050
₹1850 to ₹59,000
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Yogesh Jalwania is a stock market trader and investor with 3+ years of experience. He share valuable insights on stock market trends, mutual funds and IPOs.
