Is L&T Finance's Strong Retail Growth Supporting Citi's ₹340 Target Price?
L&T Finance (LTF) has reported another strong operating quarter, prompting Citi to reiterate its Buy rating with a target price of ₹340. The brokerage highlighted healthy retail disbursements, accelerating Assets Under Management (AUM) growth and continued progress in transforming L&T Finance into a predominantly retail-focused lender. The update reinforces confidence in the company's long-term growth strategy.
Citi's Key Observations
✅ Citi maintains a Buy rating with a target price of ₹340.
✅ Retail disbursements stood at ₹23,800 crore, rising 36% YoY and broadly in line with Citi's expectations.
✅ Retail AUM increased to ₹1.27 lakh crore, growing 28% YoY and 6.6% QoQ.
✅ Retail loans now account for more than 98% of the total portfolio, reflecting successful retailisation.
✅ Urban Finance recorded robust growth of 57% YoY, while Farmer Finance and SME Finance also reported healthy expansion.
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Business Performance Snapshot
| Business Segment | Performance |
|---|---|
| Retail Disbursements | +36% YoY |
| Retail AUM | +28% YoY |
| Urban Finance | +57% YoY |
| Farmer Finance | +11% YoY |
| SME Finance | +23% YoY |
| Retailisation | Above 98% |
🔹 Strong retail loan growth supports long-term earnings visibility.
🔹 Diversified lending portfolio reduces dependence on any single segment.
🔹 Continued retailisation may improve profitability and risk management.
🔹 Investors should monitor asset quality, credit costs and net interest margins as the loan book expands.
L&T Finance has steadily transformed into a retail-focused NBFC with diversified exposure across consumer finance, rural lending, SME finance and urban finance. Consistent execution, healthy loan growth and disciplined portfolio management remain key factors supporting its long-term growth story.
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Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, observes that L&T Finance continues to demonstrate strong execution through accelerating retail AUM growth and diversified lending. Citi's positive outlook reflects confidence in the company's retail-led strategy, although investors should continue
