L&T Finance shares fall 8% post Q4 earnings, check details

L&T Finance shares fall 8% post Q4 earnings, check details

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L&T Finance Holdings witnessed a sharp decline in its stock price, tumbling over 8% during intraday trading, even after reporting a 15% increase in consolidated net profit for Q4 FY2024-25. This marked the worst intraday session for the company’s shares since April 7 this year. The stock initially fell to ₹158.2 but later recovered some losses, trading 2.64% lower at ₹168. Meanwhile, the broader Nifty50 index recorded a 1.22% gain, highlighting the contrast in market sentiment.

For the quarter, L&T Finance reported a rise in total income to ₹4,027 crore, with interest income climbing to ₹3,750 crore. Despite these solid financial numbers, the market’s reaction was noticeably negative, suggesting deeper investor concerns possibly related to growth sustainability or valuation pressures.

In a strategic pivot aimed at strengthening its secured, high-yield loan portfolio, L&T Finance announced its entry into the gold loan business. The company signed a business transfer agreement with Paul Merchants Finance Private Limited to acquire their gold loan operations. This acquisition is expected to fast-track the scaling of L&T Finance’s gold loan segment by approximately 36 months, offering a high-quality, profitable platform with an attractive return on assets, and secured at a favourable valuation.

Over the past year, L&T Finance shares have risen by 22%, significantly outperforming the Nifty50’s modest 2.8% gain. However, the recent price correction underscores a cautious outlook among investors despite strong earnings and strategic initiatives. With a market capitalisation of ₹41,414.81 crore, L&T Finance now faces the dual challenge of capitalising on new growth opportunities while addressing the market’s current skepticism.

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