L&T Finance Ltd (LTF.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-138.1%

-₹95.93

vs ₹252.00 price

Levered DCF

₹42.17

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.56

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	20.15×	14.22×	17.43×	12.51×	18.61×	21.35×	5.96×	13.65×
P/B	2.15×	1.47×	1.72×	0.94×	1×	1.1×	0.69×	2.26×
P/S	3.46×	2.4×	3.05×	1.65×	1.76×	1.94×	0.83×	2.83×
EV / EBITDA	38.6×	32.82×	36.07×	-205.29×	74.46×	75.02×	22.31×	9.21×
Gross margin	58.9%	61.7%	59.4%	52.9%	49.3%	32.6%	38.2%	36.2%
Operating margin	35.8%	22.3%	22.9%	-4.5%	10.8%	11.8%	22.0%	28.4%
Net margin	17.2%	16.9%	17.5%	13.2%	9.4%	9.1%	14.0%	20.7%
Current ratio	0×	0×	3.26×	11.25×	14.31×	19.53×	0×	0×
Debt / equity	3.94×	3.61×	3.27×	3.86×	4.25×	4.72×	3.99×	0×
Interest coverage	0.91×	0.58×	0.56×	-0.1×	0.21×	0.17×	0.36×	0.44×
Dividend yield	1.1%	1.7%	1.2%	0.6%	0.0%	0.0%	4.8%	0.9%
Payout ratio	23.0%	23.5%	21.4%	7.6%	0.0%	0.0%	28.5%	12.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.7%	10.3%	9.9%	7.5%	5.4%	5.2%	11.6%	16.6%
Return on invested capital	3.3%	1.6%	1.5%	-0.4%	0.5%	0.5%	1.5%	1.9%
Return on assets	2.1%	2.2%	2.3%	1.5%	1.0%	0.9%	1.6%	2.1%
Free cash flow yield	17.9%	-44.6%	1.4%	32.4%	30.1%	26.1%	20.5%	-38.6%
Earnings yield	5.0%	7.0%	5.7%	8.0%	5.4%	4.7%	16.8%	7.3%
Enterprise value	₹1.6T	₹1.2T	₹1.1T	₹914.1B	₹986.9B	₹1T	₹616B	₹285.6B
Net debt / EBITDA	24.32×	22.46×	23.21×	-159.65×	59.42×	59.64×	18.64×	-0.59×
Cash conversion cycle (days)	-82	-81	-76	-46	-24	-13	1	-6