NBFCs play a critical role in the nation’s economic development by providing a fillip to transportation, employment generation, infrastructure development, wealth creation, credit delivery even in the remotest corners of the country, and seamless funding for small businesses, start-ups and MSMEs.
They encourage micro entrepreneurship and imbue self-reliance by attending to various financial needs of the unbanked.
That is why the contribution of the NBFC sector to the overall credit in the Indian economy rose to 19% in FY19 from 12.8% in FY14.
There is no doubt that these difficult times have slowed us down, but they cannot diminish the sector’s importance in nation-building. The long-term prospects for highly rated and good quality NBFCs remains robust, and once things get back to normal, the segment will continue to catalyse India’s economic growth.
Company has deployed AI-driven algorithm, which has resulted in better asset quality and repayments, and a considerable improvement in our turnaround time (TAT) to about 45 seconds in some cases.
The GDP growth for FY20 plummeted to a 4.2%, as against the 6.1% in FY19. The only exception was the rural economy, which emerged as a winner, backed by favourable policy measures, healthy water-reservoir levels, and increased sowing of Rabi crops.
Most NBFCs continued to face their own set of challenges: liquidity and solvency issues, rising borrowing costs and limited funding access. Therefore, lenders across all genres strongly preferred highrated NBFCs, such as L&T Finance, with sound fundamentals, strong parentage and high credit ratings. Despite the difficult conditions in the economy, your Company remained strong because of its robust business model.
Company retained its leadership position amongst the principal financiers across its focused businesses in FY20.
Apart from retaining the market share across businesses, the company also gained some in Two-Wheeler and Farm Equipment segments.
L&T Finance Business
Farm Equipment Finance
Loan against Property (LAP)
Infra Debt Fund
Currently the stock is trading at 5 year low and is expected to give good return for long term investor.
Short term trader can buy this stock in dips for a target of 85.
Support = 59/52
Resistance = 72.70/85