Should I buy L&T Finance stock in 2025? Complete India market review

What is L&T Finance?

How much is L&T Finance stock?

The price of L&T Finance stock is rising this week. As of now, the stock trades at ₹175.29, reflecting a 0.24% increase in the past 24 hours and a 2.39% gain over the last week. L&T Finance holds a market capitalization of ₹43,781 crore, with an average three-month volume of 6.3 million shares.

With a beta of 0.78, L&T Finance has shown lower volatility than the broader market, making it an attractive pick for investors seeking stable growth.

Our full analysis on L&T Finance stock

We have undertaken a thorough review of L&T Finance’s latest financial results and analyzed the stock’s multi-year performance trajectory. By synthesizing a range of financial indicators, technical signals, live market data, and competitive intelligence through advanced proprietary algorithms, our focus turns to what lies ahead for this notable NBFC leader. So, why might L&T Finance stock once again become a strategic entry point into the Indian financial sector as we move into 2025?

Recent Performance and Market Context

L&T Finance’s price action in 2025 has demonstrated remarkable resilience and consistent upward momentum. As of 19 May 2025, the stock trades at ₹175.29, placing it solidly above mid-cycle lows and just below its recent 52-week high of ₹194.25. Over the past month, the share price has advanced by 7.1%, amplifying a robust +25.5% gain over the prior six months—a clear testament to the underlying positive market sentiment and the company’s growth delivery.

Crucially, these gains align with positive news flow for the company:

• Record final dividend announcement: The company declared its highest-ever dividend at ₹2.75 per share for FY25, rewarding shareholders and signaling management’s confidence in sustainable earnings.
• Expansion into gold loans: Entry into this high-growth retail lending segment in February 2025 opens a new avenue for asset growth and higher yields.
• Strategic digital initiatives: The launch of “Knowledgeable AI” enhances customer engagement and operational efficiency, validating the company’s technology-forward vision.

On a sectoral level, NBFCs in India are positioned to benefit from structural trends—primarily accelerated credit demand in under-penetrated rural and semi-urban regions, as well as rising disposable incomes. Supportive macroeconomic policies, stable inflation, and a benign interest rate environment further underpin industry optimism.

Technical Analysis

L&T Finance’s technical setup lends additional credence to the bullish narrative:

• Relative Strength Index (RSI) stands at 61: This mid-range reading suggests that the stock is neither overbought nor oversold, offering scope for further upside without immediate risk of technical correction.
• Money Flow Index (MFI) at 55.3: Signals balanced capital inflows, reinforcing underlying demand rather than speculative froth.
• Moving averages: The current price is well above both the 50-day SMA (₹157.70) and the 200-day SMA (₹154.80). These levels have transitioned from resistance to support, indicating a mature uptrend in both short- and long-term perspectives.
• Support and resistance: Robust support zones at ₹173.50 and ₹171.70 invite confident entry positioning, while resistance clusters at ₹176.67 and ₹178.04 represent achievable targets ahead of potential bullish breakouts.

Furthermore, the technical structure points to sustained medium-term upward momentum. The crossover of the short-term and long-term averages, with price consistently sustaining above, often precedes renewed buying interest. This technical condition, combined with constructive volume trends, makes the current setup particularly compelling for investors seeking to capture continued upside.

Fundamental Analysis

On the fundamentals, L&T Finance distinguishes itself with a combination of profitable growth, sound risk management, and clear strategic direction:

• Topline and bottomline growth: In FY25, the company reported a 14% YoY expansion in net profit to ₹2,644 crore and nearly 10% growth in total income to ₹4,027 crore for the latest quarter. This is driven by rapid retail book expansion (+19%) and successful retail disbursements.
• Profitability metrics: ROE registers at 10.85% and ROA at 2.39%—robust by sector standards and reflective of prudent asset quality and operational efficiency.
• Valuation remains attractive: With a P/E ratio of 16.60 and P/B at 1.74, L&T Finance currently trades at a discount to many peers in the Indian NBFC space, while offering a dividend yield of 1.57%. This balance of income and growth represents a strong value proposition for risk-adjusted returns.
• Creditworthiness and brand strength: The AAA/Stable and A1+ ratings from top credit agencies reflect financial resilience, while the company benefits from strategic support and reputational capital as a core member of the L&T Group.
• Strategic innovations: The company’s foray into technology-driven lending and customer-centric product suites, such as gold loans and AI-enabled platforms, underscores its ability to anticipate market needs and rapidly adapt.

This combination of profitable growth, sector leadership, prudent risk controls, and innovative drive provides a persuasive case for ongoing fundamental strength and valuation re-rating.

Volume and Liquidity

Liquidity remains a key aspect of the stock’s attractiveness:

• Average daily trading volume of 6.3 million shares demonstrates high market participation and ease of entry/exit for institutional and retail investors alike.
• The large float, boosted by promoter holding of 66.24%, ensures a broad investor base but enough supply/demand symmetry to support price discovery and dynamic valuation—especially on catalysts or strong news flow.

Historically, moments of above-average volume in L&T Finance have coincided with significant moves in the underlying. Recent sustained trading activity at elevated price levels points to market-wide confidence and a healthy appetite for further accumulation.

Catalysts and Positive Outlook

A host of structural growth drivers and imminent corporate actions position L&T Finance at the confluence of opportunity:

• New business lines: The gold loan vertical launched in 2025 leverages L&T Finance’s retail footprint and technology backbone. This segment typically offers high yields and strong collateral coverage, adding asset quality resilience.
• Digital transformation: Harnessing AI and platform innovation strengthens customer engagement, lowers cost-to-serve, and improves process automation—a source of long-term margin expansion.
• Rural market thrust: With 2.6 crore retail customers and deep rural penetration, L&T Finance is exceptionally placed to capture credit demand from India’s underserved segments—a key pillar of the government’s financial inclusion strategy.
• Consistent capital markets access: Successful placement of ₹1,000 crore via NCDs in April 2025 reaffirms investor trust and ensures capital availability for future asset expansion.
• Dividend growth and reward culture: The record-high final dividend signals earnings visibility and management confidence in cash flows.

These catalysts are amplified by systemic tailwinds—an NBFC sector that is consolidating, growing credit offtake, and benign regulatory signals. In particular, tech-driven players with geographic reach and diversified books like L&T Finance look set to outpace legacy NBFCs in profitability and valuation re-rating.

Investment Strategies

Given L&T Finance’s prevailing technical structure and supportive fundamentals, several investment approaches appear justified:

• Short-term positioning: The current technical support at ₹173.50 offers an optimal entry, with clear targets at resistance levels near ₹178—a zone that, if breached, could invite further momentum trade setups.
• Medium-term horizon: Investors seeking to ride the next leg of the NBFC rally may view the 6–12 month window as advantageous, as the company digests its digital transformation and scales recent growth for continued earnings expansion.
• Long-term allocation: For those with a structural view, exposure to L&T Finance at sub-20 P/E and attractive trailing yield provides a gateway to India’s under-penetrated finance sector, with strategic inflection points in rural credit and technology-driven lending likely to fuel opportunity through the next economic cycle.

Whether accumulating during periods of technical retracement or ahead of anticipated upward catalysts such as the next quarterly results or product launches, L&T Finance consistently demonstrates an ability to reward patient, disciplined investors. Its well-defined support zones also facilitate tactical trading strategies with defined risk/reward.

Is It the Right Time to Buy L&T Finance?

Summing up, L&T Finance stands at a dynamic juncture—undervalued on key fundamental metrics, well-supported by technical structure, and buoyed by a succession of strategic catalysts. Its combination of rapid retail growth, prudent risk management, robust dividend payouts, and strong parentage distinguish it among NBFC peers, particularly as India’s credit cycle enters an accelerated phase.

All key signals—market price action, volume, technical indicators, and underlying business momentum—suggest that the stock may be entering a fresh bullish phase. For investors seeking exposure to India’s evolving financial sector, the current setup for L&T Finance seems to represent an excellent opportunity to capitalize on a company poised for sustainable outperformance.

With a proven business model, visionary leadership, compelling growth levers, and a supportive market context, L&T Finance exudes the kind of upside potential that deserves thoughtful consideration for any growth-focused portfolio looking to harness India’s next chapter of financial inclusion and digital innovation.

How to buy L&T Finance stock in IN?

Buying L&T Finance stock online has never been easier or more secure for investors in India. Using a regulated broker, you can safely purchase shares with just a few clicks on your smartphone or computer. There are two primary methods to get exposure: direct cash (spot) buying, where you own actual shares, and Contracts for Difference (CFDs), allowing you to trade price movements with leverage. Both approaches offer flexible opportunities to participate in L&T Finance’s growth, each catering to different investment goals. For detailed comparisons of the best brokers in India, be sure to review the table further down this page.

Cash Buying

A cash purchase means you are buying L&T Finance shares outright through your brokerage account. Shares are held in your demat account, making you a part-owner and eligible for dividends and voting rights. Indian brokers typically charge a fixed commission per order, ranging from ₹10 to ₹25, plus applicable taxes.

Important Example

Example:
Suppose the L&T Finance share price is ₹175.29 and you start with a ₹1,000 investment. With a brokerage fee of ₹25, you can buy approximately 5 shares (₹175.29 × 5 = ₹876.45 + ₹25 fee ≈ ₹901.45, leaving room for taxes and minor charges).
✔️ Gain scenario:
If the share price increases by 10%, your 5 shares are now worth ₹963.10 (5 × ₹192.82).
Result: That’s a gross gain of about ₹87 (₹963.10 − ₹876.45), or roughly +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on L&T Finance share prices without owning the actual shares. Instead, you enter into a contract with your broker to gain from price movements—up or down. Brokerages typically make money from the spread (difference between buy/sell price) and may charge overnight financing fees for leveraged positions.

Important Example

Example:
You open a CFD with a ₹1,000 margin and 5x leverage, giving you exposure to ₹5,000 worth of L&T Finance shares.
✔️ Gain scenario:
If the share price rises by 8%, your position gains 8% × 5 = 40%.
Result: You make a ₹400 profit on your ₹1,000 position (excluding fees like the spread and possible overnight charges).

Final Advice

Before investing, it’s essential to compare brokers for their fees, trading platforms, and support. Charges can significantly affect your returns, especially if you trade frequently or use leverage. Ultimately, whether you choose to buy and hold L&T Finance shares directly or trade via CFDs depends on your investment objectives and risk tolerance. To help you make the best decision, refer to the broker comparison table further down the page. Happy investing!

Our 7 tips for buying L&T Finance stock

The latest news about L&T Finance

L&T Finance reports strong Q4 FY25 results with 15% YoY profit growth and robust retail expansion. In the most recent quarter, L&T Finance delivered a Profit After Tax of ₹636 crore, marking a notable 15% year-on-year increase, supported by total income growth of 9.6%. The company continued to demonstrate operational strength through a 19% expansion in its retail loan book to ₹95,180 crore and maintained assets quality, with its retail-focused transformation yielding tangible results. The growing customer base, now at 2.6 crore, underscores the effectiveness of its outreach, especially in retail and rural segments—key drivers aligned with the expansion of financial services in India.

The company declares its highest-ever final dividend of ₹2.75 per share for FY25, enhancing shareholder value. Following the impressive financial performance, L&T Finance's board approved a final dividend payout of ₹2.75 per share—the highest in its history—which pushes the indicated dividend yield to 1.57%. This move not only rewards shareholders directly but also signals the management’s confidence in the company’s capital position and future earnings visibility, further supported by its AAA/Stable credit rating from leading agencies.

L&T Finance maintains positive stock momentum, trading above key moving averages with a 2.39% gain over the last week. Recent trading activity reflects growing investor confidence, as the stock advanced 2.39% over the past week and currently trades above both its 50-day and 200-day moving averages (₹157.70 and ₹154.80, respectively). Technical indicators such as an RSI of 61 and a mid-range MFI of 55.3 suggest balanced market dynamics, neither overbought nor oversold. The lower 5Y beta of 0.78 underscores the stock’s lower-than-market volatility, appealing to risk-conscious investors in India’s NBFC sector.

Capital adequacy and growth are fortified by the ₹1,000 crore NCD issuance completed in April 2025. To support ongoing business growth and balance sheet strength, L&T Finance successfully raised ₹1,000 crore through Non-Convertible Debentures last month. This capital infusion bolsters liquidity, provides flexibility for future retail loan disbursements, and underscores market trust in the company’s financial health, further enhancing its ability to capture opportunities in underpenetrated financial markets across India.

Strategic digital initiatives, including the launch of "Knowledgeable AI," strengthen customer engagement and operational efficiency. Reflecting its commitment to digital transformation, L&T Finance recently launched "Knowledgeable AI" on its new corporate website, marking a notable advancement in tech-driven customer engagement. Coupled with strategic investments in digital platforms and the introduction of new products such as gold loans, these actions both diversify the product suite and improve customer experience, consolidating the company's competitive position as a forward-looking NBFC in India.

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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.