Shares of this midcap company jumped around 4 percent in Friday’s trading session after multiple institutional investors like DSP Blackrock, Goldman Sachs (Singapore), Axis MF bought stakes in the company.
With a market capitalization of Rs. 45,348 crores, the shares of L&T Finance Ltd started Friday’s trading session on a higher note at Rs. 178 compared to its previous close of Rs. 175.87. During the trading session, the shares hit a high of Rs. 183.23, gaining around 4 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 182 apiece.
According to the BSE Bulk, around 8.8 crore shares changed hands via open market transactions. These were offloaded by Bain Capital’s affiliates BC Asia Investment VI and BC Asia Growth Investment along with BNP Paribas Financial Markets 3.5 percent of equity, on Thursday through multiple block deals.
Among the buyers, Morgan Stanley Asia picked up a major chunk of L&T Finance shares, the FII picked around 2.67 percent stake for Rs. 574 crores, representing 38.3 percent of the total block.
Additionally, DSP Blackrock and Goldman Sachs (Singapore) acquired 0.19 percent and 0.18 percent stakes in L&T Finance, respectively.
On an interesting note, the Promoter or the holding company Larsen & Toubro (L&T) also participated in the trade by purchasing 0.50 percent. Larsen And Toubro bought as many as 1.25 crore shares of L&T Finance for Rs. 213 crores.
Moreover, Axis Mutual Fund and Religare Mutual Fund each acquired 0.16 percent, equivalent to 39.17 lakh shares, at an average price of Rs. 170.60 per share.
Looking at the company’s financial performance, the revenue increased by 4 percent from Rs. 3,533.96 crores during the December quarter to Rs. 3,671.77 crores in the March quarter. On a contrasting note, the net profits decreased by 14 percent from Rs. 639.37 crores to Rs. 553.02 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.89 percent and a return on capital employed (RoCE) of 35.26 percent for the period spanning FY23-24.
Headquartered in Mumbai, L&T Finance is an NBFC that provides a wide range of financial products and services, including farm equipment financing, two-wheeler financing, microloans, consumer loans, home loans, loans against property, and others.
Written By Vaibhav Patil
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