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.
