Cautiously Optimistic On L&T Finance, Says Prabhudas Lilladher 
A customer holds Indian rupee notes at a store in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

Cautiously Optimistic On L&T Finance, Says Prabhudas Lilladher 

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Prabhudas Lilladher Report

We are positive on Larsen and Toubro Finance Holdings Ltd. in anticipation of lower non-performing asset stress on three counts:

  1. Increased provisioning buffers (1.9% standard asset provisioning, expected credit loss at 64%, 10% provisions on Q3 restructured book of Rs 2 billion)

  2. Write-offs limited to only one conglomerate account

  3. Maximum potential restructured book at 1.4%.

Given incremental provisioning and restructuring stand capped coupled with additional buffers, we lower our NPA forecasts to 6% as against 6.5-6.7% earlier over FY21-23E.

Click on the attachment to read the full report:

Prabhudas Lilladher L&T Finance Holding Q3FY21 Result Update.pdf

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