L&T Finance Holdings: Possible NPA shocks dampen outlook, stock falls

Watch out for high exposure to non-retail loans of the company

Just when things were turning favourable for L&T Finance Holdings — a mid-sized non-banking financial company (NBFC) promoted by India’s infrastructure giant Larsen & Toubro — the liquidity crunch of 2018 has put a spanner in the works. 

Consequently, the L&T Finance stock lost about 20 per cent last year and analysts remain cautious.

Exposure to troubled names such as IL&FS and Supertech Developers (New Delhi-based real estate firm) could spell asset quality issues for L&T Finance. 

These loans add up to about Rs 2,600 crore, which is about 3 per cent of its total loan book or 5 per cent of the