Sunday, April 26, 2020

L&T Finance Holdings Ltd – Current market Price is not Sustainable

L&T Finance Holdings Ltd at  59.0  with  a  Loss     of    -4.80 %   on    25-April-2020   with formation of  a  SMALL RED Candle    on Daily  Price Chart.
What’s Worrying Me :  1.Economy disruptions due to Corona. 2. Loan repayment moratorium 3. Delay in project of constructions 4. Labour Migrations, probably 70% of the labour force will not return to work 5.
Rising in Unemployment etc
It is expected the  company will  get generate  Net Interest Income ( NII ) of Rs. 6020.00 Cr in FY2020 , Rs. 5954.00 Cr in FY2021 & Rs. 6669.0 Cr in FT 2022  and will post a Net Profit of Rs.1957 Cr  in FY2020 , Rs. 2322 CR in FY 2021 and Rs.2803.00 Cr in FY 2022.
Valuation : L&T Finance Holdings Ltd  is now Trading at X 0.6  of its Value ( Earnings of last 4 Quarter is considered here ) If we factor the above Net Profit , the Company   is Trading at X0.37 of its Value to its FY2020 earnings basis ( at a discount of ~63%), and X0.31 to FY21 its earnings ( at a discount of ~69%) and X0.26 to its FY2022 earnings ( at a Discount of ~74%)
It is expected that Market force will move the price towards its lower value.
Disclaimer : We are / may going to take exposure shortly.
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Data Source | NSE Website | Screener.In  | Capital Line | Money Control | Geojit BNP Paribas|
The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

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