India's L&T Finance falls as Kotak downgrades to "sell"

L&T Finance

04/07/2023 08:24

** Shares of L&T Finance Holdings Ltd  LTFH.NS  down 2.5% at
133.85 rupees after Kotak Institutional Equities cuts rating to
"sell" from "reduce"
    ** LTFH jumped 7.6% on Monday after it named a new CEO
    ** Kotak says L&T Finance's turnaround will be a long
process due to structural constraints
    ** Says large exposure to real estate and select wholesale
exposure led to high credit costs 
    ** Adds slowdown in overall loan growth and recent capital
issuance led to deterioration in L&T's return on equity in FY23
    ** Kotak revise its fair value on LTFH to 95 rupees from 90
rupees vs the median PT of 15 brokerages of 110 rupees 
    ** 11 of the 15 brokers rate LTFH the equivalent of "buy" or
higher, 1 rates it "hold", and 3 "sell" or below -Refinitiv data
    ** Despite Tuesday's losses, the stock is up 53.5% YTD

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))