India's L&T Finance falls as analysts flag headwinds to microfinance

L&T Finance

22/10/2024 11:08

** Shares of non-bank lender L&T Finance  LTFL.NS  close
down 7.14% at 146.55 rupees, in worst session since March 6
    ** Stock down 12% in two sessions since narrowly missing Q2
profit estimates post market hours on Friday
    ** HSBC cuts target price to 180 rupees from 195 rupees,
citing likely disruption in LTFL's assets under management and
earnings growth due to headwinds in microfinance space
    ** Citi says stress rising for LTFL due to deterioration in
microfinance segment, says December quarter results will also be
modest
    ** Morgan Stanley cuts earnings estimates for FY 2025-2027
citing rise in credit costs and likely drop in AUM
    ** Avg rating of analysts weakens marginally, though
remaining in "buy" range; median PT falls to 200 rupees from
214.50 rupees - LSEG data
    ** LTFL shares down 11.2% in 2024 so far, compared to
mid-cap index  .NIFMDCP100  which is up 21.6%
    

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))