L&T Finance is on track to be the best performer in 2025, with its shares maintaining a consistent uptrend despite market volatility. The stock has surged 121% to ₹300 apiece, marking one of the most sustained rallies in recent times.
Driving Growth
The company is aggressively leveraging artificial intelligence to slash credit costs and rapidly expanding its gold loan business. Managing Director and CEO Sudipta Roy expressed confidence in the recovery of the microfinance sector, which constitutes about 26% of the loan book.
Microfinance Segment
Roy noted that L&T Finance's disbursements have been steady above ₹2,000 crore for several months, and collection efficiency is improving secularly, standing at 99.57% in the previous month. The company is also making a major push into the gold loan market, with plans to expand its current book size of ₹1,500 crore.
Brokerage Ratings
Global brokerage firm Citi has reaffirmed its 'Buy' rating on L&T Finance, with a target price of ₹330. Domestic brokerage firms, including ICICI Direct Research and Geojit Financial Services, have also maintained their 'Buy' rating on the stock with target prices between ₹300–310 per share.
Q2 2025 Performance
L&T Finance recorded its highest-ever profit after tax and retail disbursements in the September quarter. Retail disbursements stood at ₹18,884 crore, up 25% YoY, while the retail book expanded 18% YoY to ₹1,04,607 crore.
Future Plans
To drive growth, L&T Finance is focused on expanding its customer base by deepening penetration in existing segments and broadening its geographic presence. With its strong performance and growth plans, L&T Finance is an attractive option for investors looking to tap into the financial services sector.
Remember, this is perspective, not prediction. Do your own research and consult with certified experts before making any investment decisions.