L&T Finance Holdings (LTFH), a financial arm of Larsen and Toubro, is continue at its upward march has soared 17% to Rs 75 on back of heavy volumes.
The stock has opened at Rs 64.70 and has seen a combined 33 million shares changing hands on the counter till early noon deals against an average less than 8 million shares that were traded daily in past two weeks.
The stock has rallied 39% since October 19, 2012 compared to 0.2% fall in benchmark Sensex after the company has acquired FamilyCredit, a wholly owned subsidiary company of Societe Generale Consumer Finance at a consideration of around Rs 120 crore.
According to analyst at IndiaNivesh Securities Private Limited,” LTFH is well placed non-banking finance company to take the advantage of increasing rural credit demand and parental advantage in infra segment.
The analyst has maintain positive outlook on stock due to its diversified business mix, strong business growth, stable net interest margins (NIMs) and aggressive provisioning policy as a measure of precaution.
