L&T FINANCE LIMITED Valuation

LTF · Financial Services · Current price ₹311.35

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DocStoX fair value
₹206
low confidence
Current price
₹311
Upside
-33.9%
P/E ratio
26.2x
P/B ratio
2.8x
Verdict
Expensive
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Is L&T FINANCE LIMITED undervalued?

DocStoX estimates the fair value of L&T FINANCE LIMITED at ₹206 per share, versus the current market price of ₹311. That puts the stock about -33.9% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Excess-return (book value) (₹110), Relative P/E (₹347), Analyst target (₹352). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹110 (bear) to ₹206 (base) to ₹352 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

L&T FINANCE LIMITED trades at a P/E of 26.2x and a P/B of 2.8x, with a dividend yield of 0.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on L&T FINANCE LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.