L&T Finance share price jumps over 5% to 52 week high; Emkay Global upgrades stock, raises target

On Wednesday, shares of L&T Finance Holdings surged over 5%, hitting a 52-week high in heavy trading. The company's shares saw an increase of as high as 5.30%, reaching a new peak of 170.80 each, with trading volumes skyrocketing to over 2 crore shares. This surpassed its weekly average of 86 lakh shares and monthly average of 72 lakh shares. Over the past month, the stock has experienced a substantial boost, rising over 12%, and has seen a 26% rally in the last three months.

Emkay Global Financial Services, a brokerage firm, upgraded its rating of L&T Finance Holdings from 'Reduce' to 'Buy' and increased its target price from 155 to 190 per share. The company is nearing the successful implementation of its 'Lakshya 2026' retailization strategy, a move lauded by the brokerage as it could stimulate growth and enhance financial stability moving ahead.

L&T Finance Holdings is carving out a niche in retail lending, with a firm grip on rural financing, two-wheeler financing, and farm equipment financing. Emkay Global projects robust growth in product diversification and cross-selling under the leadership of Sudipta Roy, an expert in retail lending.

The firm also commended the company’s strategies, such as reducing drag from non-interest bearing SRs and balancing the sheet to provide operating leverage. Moreover, Emkay Global adjusted its estimates to account for the rapid rundown of the wholesale book and the realization of SR receivables in FY25 and FY26.

By 12:40 pm, shares of L&T Finance were trading 3.79% higher at 168.35 each on the BSE.