Should I buy L&T Finance stock in 2025?

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At HelloSafe, our expert has been tracking the performance of L&T Finance for over three years. Every month, over a million users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by L&T Finance.

What is L&T Finance?

How much is L&T Finance stock?

The price of L&T Finance stock is stable this week. As of today, the stock is trading at ₹205.63 after a 24-hour gain of +1.15%, while the weekly change stands at -0.25%. Market capitalization is a robust ₹51,364 crores with a three-month average daily volume of 7.25 million shares. The stock carries a P/E Ratio of 19.4, a dividend yield of 1.34%, and a relatively higher beta of 1.49, reflecting greater sensitivity to market moves. Investors may find L&T Finance attractive for its retail lending growth, but should be mindful of market volatility.

Our full analysis of the L&T Finance stock

Having reviewed L&T Finance’s most recent financial disclosures and analyzed the company’s impressive stock performance over the past three years, we have synthesized comprehensive insights from financial indicators, technical patterns, market data, and direct competitor benchmarks using our proprietary multi-factor models. So, why might L&T Finance stock once again become a strategic entry point into the Indian financial services sector in 2025?

Recent performance and market context

L&T Finance stands out as one of India’s strongest NBFC stories of 2025. The stock currently trades at ₹205.63, marking a robust six-month return of over 43%, and reaching new 52-week highs. Despite minor consolidation this week (-0.25%), sentiment remains bullish, underscored by its breakout above key resistance and positive news flows. Notably, the company unveiled a portfolio expansion—acquiring a gold loan book worth ₹1,350 crores—further diversifying and solidifying its retail asset base. A stellar ESG score of 82.9 (Grade A) reinforces the growing focus on responsible business practices, while macroeconomic tailwinds including a strong credit cycle, rapid urbanization, and supportive regulatory environment continue to drive the sector, positioning L&T Finance advantageously at the heart of India’s surging consumer finance market.

Technical analysis

The technical structure for L&T Finance is unambiguously bullish. The Relative Strength Index (RSI) stands at 66.5—close to the overbought threshold but not signaling exhaustion—while a strong MACD reading of 7.40 confirms uptrend momentum. The stock trades decisively above all major moving averages (20, 50, and 100 days), reflecting consistent buying support and institutional participation. Notably, the new 52-week high at ₹209.85, backed by high volume, marks a technical breakout. Robust supports at ₹195.23 (PSAR trigger) and ₹190.44 (Supertrend) offer downside protection, providing an attractive entry buffer should short-term volatility arise. Charts reveal a series of higher highs and higher lows—one of the most reliable signatures of sustained bullish intent—positioning the stock for further advances.

Fundamental analysis

On the fundamentals, L&T Finance impresses with compelling growth, profitability, and a strategically diversified business model. Total annual revenue reached ₹15,924 crores in FY25, with quarterly revenue and net profit at ₹4,023 crores and ₹636 crores, respectively. Net profits posted a double-digit annual growth (15%), and annual EPS climbed to ₹10.60 amid expanding operating margins. The company’s pivot toward retail—now accounting for 98% of the loan portfolio—has reduced risk and improved asset quality. The P/E ratio of 19.4 appears highly attractive compared to sector averages, underscoring the potential for continued valuation re-rating as growth persists. Structural strengths include:

• Backing by Larsen & Toubro Limited, securing stability and access to best-in-class corporate governance
• AAA credit rating, signaling substantial lender and investor trust
• Rapid digitalization agenda, from onboarding to collections, strengthening operational leverage and improving customer experience
• Market leadership in emerging segments: two-wheeler financing (presence in 137 cities), housing, and gold loans

L&T Finance’s agile execution on strategic expansion makes it a textbook example of growth with stability in India’s competitive NBFC space.

Volume and liquidity

Sustained and significant market participation bolsters the case for L&T Finance. With an average three-month trading volume of 7.25 million shares, the stock enjoys robust liquidity—a crucial attribute for both institutional portfolio managers and active retail traders. Its large market capitalization (₹51,364 crores) ensures inclusion in major indices, drawing continuous flows from domestic and foreign institutional investors (FIIs/DII). A free float exceeding 15% secures dynamic valuation and minimizes the risk of liquidity crunches even during market stress. This depth of ownership and easy tradability reflect growing market confidence, positioning L&T Finance as a core holding in Indian finance-focused portfolios.

Catalysts and positive outlook

Looking forward, several strong catalysts are set to accelerate the bullish trajectory for L&T Finance:

• Retail loan growth: The company’s retail loan book surged by 18% year-on-year, reaching ₹99,800 crores, with new disbursements scaling fresh records—an unmistakable sign of rising credit demand from India’s mass market.
• ESG leadership: Recognition with an ESG grade of 82.9 from SES ESG Research positions L&T Finance among the top responsible finance providers; forward-thinking investors increasingly demand such transparency.
• Product and geographical expansion: Strategic focus on high-yield segments—two-wheeler loans, housing finance, and gold loans—matches evolving consumption patterns and strengthens risk-adjusted returns.
• Digitalization and operational agility: Advanced digital platforms drive cost efficiencies, customer reach, and asset monitoring, differentiating L&T Finance amid sector peers.
• Upcoming earnings and regulatory clarity: With Q1 FY26 earnings around the corner and regulatory norms offering clarity, event-driven interest is likely to propel valuations further.

Such multi-faceted growth drivers—embedded in both business strategy and sector momentum—create a sustained platform for future outperformance.

Investment strategies

Investors can consider a spectrum of approaches to leverage the growth path of L&T Finance:

• Short-term trading: With the recent technical breakout and consistent momentum, tactical entries near short-term support levels (₹195–₹200) may present attractive risk-reward setups for active traders, especially as volumes swell before results announcements.
• Medium-term positioning: Holders seeking to benefit from sector tailwinds and the company’s retailization strategy could use dips associated with macro news or broader market correction as accumulation opportunities. The company’s earnings cycle and regular capital allocation updates offer added visibility for mid-term tactical moves.
• Long-term portfolio building: For those with a multi-year horizon, the structural reforms, rising credit penetration, and L&T Finance’s digital and ESG leadership make a strong case for sustained portfolio representation. The company’s persistent focus on profitable growth and prudent risk management support a favorable asymmetric return profile over time.

Regardless of approach, prudent diversification and close attention to sector-wide economic trends can help optimize returns, with L&T Finance serving as a resilient anchor to capitalize on India’s financial inclusion wave.

Is it the right time to buy L&T Finance?

The sum of L&T Finance’s strengths—accelerating growth, robust technicals, attractive valuation, and high liquidity—suggests that the stock may be entering a new bullish phase. Operational discipline, strategic retail expansion, product innovation, and strong parentage all reinforce the fundamentals that justify renewed interest from investors. The consistently high trading volume and recent positive surprises in earnings indicate a powerful alignment of investor confidence and business momentum. With a strong macro backdrop supporting NBFCs and a full pipeline of catalysts, L&T Finance seems to represent an excellent opportunity for investors seeking core exposure to India’s fast-evolving finance sector.

L&T Finance combines proven execution, market relevance, and future-ready capabilities—making it one of the most compelling NBFCs to follow, and likely to reward those with a confident and disciplined investment approach.

How to buy L&T Finance stock in India?

Buying L&T Finance stock online is straightforward and secure when you use a regulated Indian broker. Investors can choose between two main options: spot buying lets you directly own the shares, while trading via CFDs enables you to benefit from leverage and short-term trading opportunities. Each method has different benefits and costs. For a detailed broker comparison tailored to your needs, be sure to check the comparison further down the page.

Spot buying

With a cash (spot) purchase, you buy L&T Finance shares via your brokerage account and become a shareholder, benefiting from ownership and dividends. Most brokers in India charge a fixed commission per order, typically between ₹100–₹150. This approach is ideal for investors looking for long-term gains from actual share ownership.

L&T Finance Share Gain Scenario

If the L&T Finance share price is ₹205.63, you can buy around 4 shares with a $1,000 (approx. ₹83,250) stake, including a brokerage fee of around $5.

✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on L&T Finance's share price movements without actually owning the shares. CFDs usually involve costs such as the spread (difference between buy/sell price) and overnight financing fees if you hold positions longer than a day. Leverage means you can control a larger position with a smaller capital outlay, increasing both potential profits and risks.

CFD position with leverage: Gain scenario

You open a CFD position on L&T Finance shares, with 5x leverage. This gives you a market exposure of $5,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Always compare brokers’ fees, trading conditions, and platform features before investing. Whether you prefer owning L&T Finance shares directly or trading with leverage via CFDs, your decision should match your investment goals and risk appetite. For helpful details, see the broker comparison available below on this page.

Our 7 tips for buying L&T Finance stock

The latest news about L&T Finance

L&T Finance set a new 52-week high of ₹209.85 on July 4, 2025, reflecting renewed investor confidence. This upward move was supported by strong trading volumes, with the stock price gaining 1.15% intraday and maintaining a significant 43.36% rise over the last six months. The sustained optimism is attributed to consistent financial performance and the company’s dominant retail NBFC position in India.

L&T Finance posted robust Q4 FY2025 results, with net profit up 15% year-on-year at ₹636 crores. Quarterly revenue reached ₹4,023 crores, and earnings per share stood at ₹2.55, underscoring improved operational efficiency. These results exceeded market expectations, highlighting both top-line and bottom-line growth as well as effective cost management in a challenging macroeconomic environment.

The company expanded its retail loan book to ₹99,800 crores for Q1 FY2026, an 18% year-on-year increase. This growth demonstrates L&T Finance’s successful retailisation strategy, with 98% of its loan book now dedicated to retail customers. The focus on vehicle finance—spread across 137 locations in India—and the recent acquisition of a ₹1,350 crore gold loan portfolio further reinforce its retail dominance and sector leadership.

L&T Finance received an ESG score of 82.9 (Grade A) from SES ESG Research this July. This strong ESG performance is increasingly valued by institutional investors, supporting the stock’s marketability. The AAA stable credit rating further adds to the company’s profile as one of India’s most credible and responsible financial services providers, attracting both domestic and overseas institutional interest.

Technical momentum remains positive with a 14-day RSI of 66.5 and bullish MACD signals. With the stock trading well above its key moving averages and near recent resistance, market conditions favor continued strength. The confluence of technical, operational, and strategic factors positions L&T Finance as a frontline performer in India’s NBFC landscape.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.