Basic Company Details

Parameters Details
Company L&T FINANCE LTD
Current Stock Price (Rs) 144
Face Value (Rs) 10.0
No. of Shares (Crore) 249.4
Market Capitalization (Rs Crore) 35,955

Key Financials - Trend

Parameters Details
Sales Growth (9-Year CAGR) 8.6%
Profit Before Tax Growth (9-Year CA 11.1%
Net Profit Growth (8-Year CAGR) 11.7%
Average Debt/Equity (5-Years, x) 4.5
Average Return on Equity (5-Years) 7.8%
Average P/E (5-Years, x) 16.2
Latest P/E (x) 6.5
 Intrinsic Value Range
L&T FINANCE LTD
Lower
Dhandho 68,665
Ben Graham 13,973
DCF 87,322
Expected Return 46,402
Current Market Cap. 35,955

Intrinsic Value Range

L&T FINANCE LTD
METHOD LOW
Dhandho 275.29

Ben Graham 56.02

DCF 350.09

Expected Return 186.03

CURRENT PRICE 144.15

alue Range
NCE LTD
Higher
119,671
15,107

35,955

alue Range
NCE LTD
HIGH
479.78

60.57
 Balance Sheet
L&T FINANCE LTD
Rs Cr Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Equity Share Capital 1,720 1,753 1,756 1,996 1,999 2,005 2,469 2,474 2,480 2,489
Reserves 4,656 5,324 6,020 9,411 11,450 12,688 16,304 17,474 19,049 20,950
Borrowings 43,454 52,829 61,024 75,248 91,507 93,934 88,592 85,237 83,105 76,603
Other Liabilities 2,912 3,893 3,711 1,117 1,094 902 1,582 1,696 1,706 2,652
Total 52,742 63,799 72,511 87,772 106,050 109,529 108,947 106,880 106,339 102,694

Net Block 1,184 1,313 1,230 1,151 1,127 1,100 1,138 509 553 519
Capital Work in Progress 174 22 28 19 39 62 24 22 5 36
Investments 2,649 3,563 6,012 5,301 8,641 5,979 8,872 11,917 14,366 12,385
Other Assets 48,736 58,901 65,242 81,301 96,243 102,387 98,913 94,433 91,415 89,754
Total 52,742 63,799 72,511 87,772 106,050 109,529 108,947 106,880 106,339 102,694

Working Capital 45,824 55,008 61,531 80,183 95,149 101,485 97,331 92,737 89,710 87,102
Debtors 21 27 79 126 106 65 47 16 6 247
Inventory - - - - - - - - - -
Cash & Bank** 216 179 195 238 304 435 396 300 423 696
** Manually enter this number; Convert to Rs Crore if not already done in the Annual Reports; Use Cash+Bank+Current Investments from Consolidated Balance Sheet in Annual Reports

Debtor Days 1 1 3 5 3 2 1 0 0 7
Inventory Turnover - - - - - - - - - -
Fixed Asset Turnover 5.5 5.7 6.9 8.9 11.9 12.8 11.7 23.4 23.1 26.1
Debt/Equity 6.8 7.5 7.8 6.6 6.8 6.4 4.7 4.3 3.9 3.3
Return on Equity 13% 12% 13% 11% 17% 12% 5% 5% 7% 10%
Return on Capital Employed 10% 9% 8% 8% 9% 9% 8% 7% 7% 8%
 Profit & Loss Account / Income Statement
L&T FINANCE LTD
Rs Cr Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trailing
Sales 6,456 7,440 8,532 10,215 13,365 14,104 13,353 11,930 12,775 13,581 15,009
% Growth YOY 15% 15% 20% 31% 6% -5% -11% 7% 6%
Expenses 1,625 1,979 2,776 3,308 3,377 4,160 5,401 5,233 7,938 5,524 6,053
Material Cost (% of Sales) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Power and Fuel 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Other Mfr. Exp 1% 1% 1% 5% 9% 3% 6% 12% 8% 7%
Employee Cost 5% 7% 6% 4% 6% 8% 7% 9% 11% 13%
Selling and Admin Cost 8% 6% 5% 4% 4% 4% 5% 8% 9% 11%
Operating Profit 4,831 5,461 5,756 6,907 9,988 9,944 7,952 6,697 4,837 8,057 8,957
Operating Profit Margin 75% 73% 67% 68% 75% 71% 60% 56% 38% 59% 60%
Other Income 16 8 26 49 -4 370 836 594 2,795 474 58
Other Income as % of Sales 0.3% 0.1% 0.3% 0.5% 0.0% 2.6% 6.3% 5.0% 21.9% 3.5% 0.4%
Depreciation 96 83 67 52 50 82 86 103 111 115 119
Interest 3,577 4,133 4,635 5,458 6,882 7,552 7,230 5,765 5,812 5,387 5,516
Interest Coverage(Times) 1 1 1 1 1 1 1 1 1 2 2
Profit before tax (PBT) 1,175 1,253 1,079 1,446 3,052 2,680 1,472 1,423 1,709 3,029 3,380
% Growth YOY 7% -14% 34% 111% -12% -45% -3% 20% 77%
PBT Margin 18% 17% 13% 14% 23% 19% 11% 12% 13% 22% 23%
Tax 324 399 36 168 820 980 523 374 172 712 806
Net profit 851 854 1,042 1,278 2,232 1,700 949 1,049 1,536 2,317 2,574
% Growth YOY 0% 22% 23% 75% -24% -44% 11% 46% 51%
Net Profit Margin 13% 11% 12% 13% 17% 12% 7% 9% 12% 17% 17%
EPS 4.0 4.0 4.8 5.2 9.1 6.9 3.8 4.2 6.2 9.3 10.3
% Growth YOY -2% 22% 8% 74% -24% -44% 10% 46% 50%
Price to earning 14.5 15.0 23.8 28.1 15.6 6.9 24.9 19.0 13.2 17.0 14.0
Price 58 59 115 146 142 48 96 81 82 158 144
Dividend Payout 16.1% 16.4% 13.5% 15.9% 9.0% 10.6% 0.0% 11.6% 30.6% 26.8%
Market Cap 12,357 12,806 24,832 35,859 34,877 11,762 23,669 19,940 20,346 39,387
Retained Earnings 714 714 902 1,074 2,032 1,520 949 928 1,067 1,696
Buffett's $1 Test 2.3

TRENDS: 10 YEARS 7 YEARS 5 YEARS 3 YEARS

Sales Growth 8.6% 6.9% 0.3% 0.6%
PBT Growth 11.1% 15.9% -0.2% 27.2%
PBT Margin 16.2% 16.4% 15.5% 15.9%
Price to Earning 17.8 17.8 16.2 16.4
EPS 5.8 6.4 6.1 6.6

Check for long term vs short term trends here. Check if the growth over past
3 or 5 years has slowed down / improved compared to long term (7 to 10
years) growth numbers.
 Cash Flow Statement
L&T FINANCE LTD
Rs Cr Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Total
Cash from Operating Activity (CFO) -6,474 -9,213 -5,779 -15,640 -11,643 2,162 5,464 6,078 6,718 673 -27,653
% Growth YoY 42% -37% 171% -26% -119% 153% 11% 11% -90%
Cash from Investing Activity 2 -675 -2,118 1,549 -3,587 160 -2,025 -5,087 -862 849 -11,793
Cash from Financing Activity 6,552 9,426 7,952 14,678 16,008 1,451 -2,091 -3,023 -1,664 -7,037 42,252
Net Cash Flow 81 -461 55 587 777 3,772 1,349 -2,032 4,193 -5,515 2,806
CFO/Sales -100% -124% -68% -153% -87% 15% 41% 51% 53% 5%
CFO/Net Profit -761% -1079% -554% -1224% -522% 127% 576% 579% 437% 29%
Capex** 1,233 1,638 1,238 824 980 1,288 581 570 604 788
FCF -7,707 -10,851 -7,017 -16,464 -12,623 874 4,883 5,508 6,114 -115 -37,397
Average FCF (3 Years) 3,836
FCF Growth YoY 41% -35% 135% -23% -107% 459% 13% 11% -102%
FCF/Sales -119% -146% -82% -161% -94% 6% 37% 46% 48% -1%
FCF/Net Profit -902% -1267% -673% -1312% -567% 51% 503% 515% 377% -5%

** Manually enter this number;

Convert to Rs Crore if not already
done in the Annual Reports; Use
"Capital expenditure" number
shown under "Cash Flow from
Investing Activities" segment of
Consolidated Cash Flow Statement
available in the Annual Reports
 Key Ratios
L&T FINANCE LTD
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22
Sales Growth 15.2% 14.7% 19.7% 30.8% 5.5% -5.3% -10.7%
PBT Growth 6.6% -13.9% 34.0% 111.1% -12.2% -45.1% -3.3%
Net Profit Growth 0.3% 22.1% 22.5% 74.7% -23.8% -44.2% 10.6%
Dividend Growth 1.9% 0.1% 42.1% 0.2% -9.7% -100.0% #DIV/0!
Operating Cash Flow Growth 42.3% -37.3% 170.6% -25.6% -118.6% 152.8% 11.2%
Free Cash Flow Growth 40.8% -35.3% 134.6% -23.3% -106.9% 458.9% 12.8%

Operating Margin 74.8% 73.4% 67.5% 67.6% 74.7% 70.5% 59.6% 56.1%
PBT Margin 18.2% 16.8% 12.6% 14.2% 22.8% 19.0% 11.0% 11.9%
Net Margin 13.2% 11.5% 12.2% 12.5% 16.7% 12.1% 7.1% 8.8%

Debtor Days 1.2 1.3 3.4 4.5 2.9 1.7 1.3 0.5
Inventory Turnover - - - - - - - -
Fixed Asset Turnover 5.5 5.7 6.9 8.9 11.9 12.8 11.7 23.4
Debt/Equity 6.8 7.5 7.8 6.6 6.8 6.4 4.7 4.3
Debt/Assets 82.4% 82.8% 84.2% 85.7% 86.3% 85.8% 81.3% 79.7%
Interest Coverage (Times) 1.3 1.3 1.2 1.3 1.4 1.4 1.2 1.2
Return on Equity 13.3% 12.1% 13.4% 11.2% 16.6% 11.6% 5.1% 5.3%
Return on Capital Employed 9.5% 9.0% 8.3% 8.0% 9.5% 9.4% 8.1% 6.8%
Free Cash Flow (Rs Cr) -7,707 -10,851 -7,017 -16,464 -12,623 874 4,883 5,508
Mar/23 Mar/24
7.1% 6.3%
20.1% 77.3%
46.4% 50.8%
300.9% 25.5%
10.5% -90.0%
11.0% -101.9%

37.9% 59.3%
13.4% 22.3%
12.0% 17.1%

0.2 6.6
- -
23.1 26.1
3.9 3.3
78.2% 74.6%
1.3 1.6
7.1% 9.9%
7.2% 8.4%
6,114 -115
What to look for?
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency
Higher isn't always better, esp. when the company is generating high ROE, which means the management is allocating capital
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency

Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry
Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry
Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry

Lower/reducing is better. Compare with industry peer(s)

Higher/rising is better. Compare with industry peer(s)
Higher/rising is better. Compare with industry peer(s)
Nil / lower than 0.5 / reducing is better
Lower is better
Look for number > 5
Look for number > 20%. Also check if the debt is low/nil. Compare with industry peer(s)
Look for number > 20%. Also check if the debt is low/nil. Compare with industry peer(s)
Look for positive and rising numbers. If the company consistently generates negative FCF over say 10 years, avoid it.
80% Profit Margin 20%
Capital Allo
Check for a rising trend
70% Numbers > 20% long te
60% 15% pany has zero/marginal
50% petitor
40% 10%
30%
20% 5%
Check for a rising trend and/or
10% consistency. Compare with a close
0% competitor 0%
5 6 7 8 9 0 1 2 3 4 5 6 7 8
n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/2 n/2 n/1 n/1 n/1 n/1
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja
Operating Margin PBT Margin
Net Margin ROE

16,000
Revenue 120% Revenue and P
Check for a rising trend. Check for a
14,000 100% Compare gr
12,000 80%
10,000 60%
8,000 40%
20%
6,000
0%
4,000
-20% 16 7 8 9
2,000 n/ n/1 n/1 n/1
-40%Ja Ja Ja Ja
- -60%
/15 /16 /17 /18 /19 /20 /21 /22 /23 /24 Revenue Grow
n n n n n n n n n n
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Net Profit Gr

3,500 Profit Over Time Operating an

10,000 Check
Check for a rising trend. for positive num
3,000 5,000 which are rising over
2,500 -
2,000 5 6 7 8
-5,000 /1 /1 /1 /1
1,500 n n n n
1,000 -10,000Ja Ja Ja Ja J

500 -15,000
- -20,000
5 6 7 8 9 0 1 2 3 4
n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/2 n/2
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja

PBT Net Profit Operating Cash F

Data for Charts (Please don't touch any number below)
Margins
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Operating Margin 75% 73% 67% 68% 75% 71% 60% 56% 38%
PBT Margin 18% 17% 13% 14% 23% 19% 11% 12% 13%
Net Margin 13% 11% 12% 13% 17% 12% 7% 9% 12%

Management Effectiveness
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
ROE 13% 12% 13% 11% 17% 12% 5% 5% 7%
ROCE 10% 9% 8% 8% 9% 9% 8% 7% 7%

Revenue & Profit Growth

Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
Revenue Growth 15% 15% 20% 31% 6% -5% -11% 7% 6%
PBT Growth 7% -14% 34% 111% -12% -45% -3% 20% 77%
Net Profit Growth 0% 22% 23% 75% -24% -44% 11% 46% 51%

Revenue & Profit

Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Revenue 6,456 7,440 8,532 10,215 13,365 14,104 13,353 11,930 12,775
PBT 1,175 1,253 1,079 1,446 3,052 2,680 1,472 1,423 1,709
Net Profit 851 854 1,042 1,278 2,232 1,700 949 1,049 1,536

Cash Flows
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Operating Cash Flow -6,474 -9,213 -5,779 -15,640 -11,643 2,162 5,464 6,078 6,718
Free Cash Flow -7,707 -10,851 -7,017 -16,464 -12,623 874 4,883 5,508 6,114
 Capital Allocation Quality
Check for a rising trend and/or consistency.
Numbers > 20% long term are good. Also check if the com-
pany has zero/marginal debt. Compare with a close com- Note: Please ignore the dates
petitor on the X-axis. The figures are
for/as on the year ending date,
which for most Indian
companies would be 31st
March of that year

15 /1
6
/1
7
/1
8
/1
9
/2
0
/2
1
/2
2
/2
3
/2
4
n/ n n n n n n n n n
Ja Ja Ja Ja Ja Ja Ja Ja Ja

ROE ROCE

Revenue and Profit Growth (YoY)

Check for a rising trend and/or low volatility.
Compare growth rates with a close competitor.

16 /1
7
/1
8
/1
9
/2
0
/2
1
/2
2
/2
3
/2
4
n/ n n n n n n n n
Ja Ja Ja Ja Ja Ja Ja Ja

Revenue Growth PBT Growth

Net Profit Growth

Operating and Free Cash Flow

Check for positive numbers and
which are rising over time.

5 6 7 8 9 0 1 2 3 4
n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/2 n/2
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja

Operating Cash Flow Free Cash Flow

Mar/24
59%
22%
17%

Mar/24
10%
8%

Mar/24
13,581
3,029
2,317

Mar/24
673
-115
 Common Size P&L
Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Sales 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Raw Material Cost 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Change in Inventory 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Power and Fuel 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Other Mfr. Exp 1% 1% 1% 5% 9% 3% 6% 12% 8% 7%
Employee Cost 5% 7% 6% 4% 6% 8% 7% 9% 11% 13%
Selling and Admin Cost 8% 6% 5% 4% 4% 4% 5% 8% 9% 11%
Other Expenses 11% 13% 21% 20% 5% 15% 22% 14% 33% 10%
Operating Profit 75% 73% 67% 68% 75% 71% 60% 56% 38% 59%
Other Income 0% 0% 0% 0% 0% 3% 6% 5% 22% 3%
Depreciation 1% 1% 1% 1% 0% 1% 1% 1% 1% 1%
Interest 55% 56% 54% 53% 51% 54% 54% 48% 45% 40%
Profit Before Tax 18% 17% 13% 14% 23% 19% 11% 12% 13% 22%
Tax 5% 5% 0% 2% 6% 7% 4% 3% 1% 5%
Net Profit 13% 12% 12% 12% 17% 12% 7% 9% 13% 17%
Dividend Amount 2% 2% 2% 2% 1% 1% 0% 1% 4% 5%

Common Size Balance Sheet

Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Equity Share Capital 3% 3% 2% 2% 2% 2% 2% 2% 2% 2%
Reserves 9% 8% 8% 11% 11% 12% 15% 16% 18% 20%
Borrowings 82% 83% 84% 86% 86% 86% 81% 80% 78% 75%
Other Liabilities 6% 6% 5% 1% 1% 1% 1% 2% 2% 3%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Net Block 2% 2% 2% 1% 1% 1% 1% 0% 1% 1%
Capital Work in Progress 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Investments 5% 6% 8% 6% 8% 5% 8% 11% 14% 12%
Other Assets 92% 92% 90% 93% 91% 93% 91% 88% 86% 87%
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Receivables 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Inventory 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Cash & Bank 2% 1% 1% 1% 2% 7% 8% 7% 12% 5%
 A common-size financial statement is displays line
items as a percentage of one selected or common
figure. Creating common-size financial statements
makes it easier to analyze a company over time and
compare it with its peers. Using common-size
financial statements helps investors spot trends that a
raw financial statement may not uncover.
 Dhandho Intrinsic Value Calculation
Read the book - The Dhandho Investor by Mohnish Pabrai

L&T FINANCE LTD L&T FINANCE LTD

Dhandho IV - Lower Range Dhandho IV - Higher Range
Year FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth Year
0 Excess Cash (Latest) 696 Year 1-3 15% 0 Excess Cash (Latest)
1 FY18 4,411 3,939 Year 4-6 10% 1 FY18
2 FY19 5,073 4,044 Year 7-10 5% 2 FY19
3 FY20 5,834 4,153 Discount Rate 12% 3 FY20
4 FY21 6,417 4,078 4 FY21
5 FY22 7,059 4,006 Last 5-Years' CAGR 5 FY22
6 FY23 7,765 3,934 Sales 0% 6 FY23
7 FY24 8,153 3,688 PBT 0% 7 FY24
8 FY25 8,561 3,458 FCF -61% 8 FY25
9 FY26 8,989 3,242 9 FY26
10 FY27 9,438 3,039 10 FY27
10 94,384 30,389 10
Intrinsic Value 68,665 Intrinsic Value
Current Mkt. Cap. 35,955 Current Mkt. Cap.
Premium/(Discount) to IV -48% Premium/(Discount) to IV

Note: See explanation of this model here

P.S. In case of companies earning negative FCF, where this model will not work, you must use a normalized positive FCF as th
number. This number is your assumption of FCF the business will earn in a normal year, without capex. Check the history o
business while arriving at your assumption, and use your judgment wisely without twisting the model to fit your version of re
Calculation
by Mohnish Pabrai

L&T FINANCE LTD

Dhandho IV - Higher Range
FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth
Excess Cash (Latest) 696 Year 1-3 20%
4,603 4,110 Year 4-6 15%
5,524 4,403 Year 7-10 10%
6,628 4,718 Discount Rate 12%
7,623 4,844
8,766 4,974
10,081 5,107
11,089 5,016
12,198 4,927
13,418 4,839
14,760 4,752
221,396 71,284
Intrinsic Value 119,671
Current Mkt. Cap. 35,955
Premium/(Discount) to IV -70%

use a normalized positive FCF as the starting

, without capex. Check the history of this
ng the model to fit your version of reality.
 Ben Graham Formula (Low Range) Ben Graham Formula (High Range
Company Name L&T FINANCE LTD Company Name
Year Ended Mar/24 Year Ended

Avg 5-Yr Net Profit (Rs Crore) 1,510.4 Avg 5-Yr Net Profit (Rs Crore)
PE Ratio at 0% Growth 8.5 PE Ratio at 0% Growth
Long-Term Growth Rate 0.4 Long-Term Growth Rate

Ben Graham Value (Rs Crore) 13,973 Ben Graham Value (Rs Crore)
Current Market Cap (Rs Crore) 35,955 Current Market Cap (Rs Crore)

EXPLANATION
Ben Graham's Original Formula: Value = EPS x (8.5 + 2G)
Here, EPS is the trailing 12 month EPS, 8.5 is the P/E ratio of a stock with 0% growth and g is the growth rate for the next 7-10

Ben Graham's Revised Formula: Value = [EPS x (8.5 + 2G) x 4.4] / Y

Here, 4.4 is what Graham determined to be his minimum required rate of return. At the time of around 1962 when Graham was

Note: I have used Graham's original formula in the above calculations

m Formula (High Range)
L&T FINANCE LTD
Mar/24

1,510.4
8.5
0.8

15,107
35,955

is the growth rate for the next 7-10 years

of around 1962 when Graham was publicizing his works, the risk free interest rate was 4.4% but to adjust to the present, we divide this num
resent, we divide this number by today’s AAA corporate bond rate, represented by Y in the formula above.
 Dicounted Cash Flow Valuation
L&T FINANCE LTD

Initial Cash Flow (Rs Cr) 3,836 87,322

35,955
Years 1-5 6-10 243%
FCF Growth Rate 15% 12%
Discount Rate 12%
Terminal Growth Rate 2%

Net Debt Level (Rs Cr) 75,907

Year FCF Growth Present Value

1 4,411 15% 3,939
2 5,073 15% 4,044
3 5,834 15% 4,153
4 6,709 15% 4,264
5 7,715 15% 4,378
6 8,641 12% 4,378
7 9,678 12% 4,378
8 10,840 12% 4,378
9 12,140 12% 4,378
10 13,597 12% 4,378

Final Calculations
Terminal Year 13,869
PV of Year 1-10 Cash Flows 42,667
Terminal Value 44,655
Total PV of Cash Flows 87,322
Current Market Cap (Rs Cr) 35,955

Note: See explanation of DCF here

aluation

DCF Value (As calculated in cell B29)

Current Market Cap
DCF as % of Current Mkt Cap
 Expected Returns Model
L&T FINANCE LTD
Particulars Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20
Net Profit (Rs Crore) 855 857 1,042 1,255 2,226 1,700
Net Profit Margin 13% 12% 12% 12% 17% 12%
Return on Equity 13% 12% 13% 11% 17% 12%

Calculations (Enter values only in black cells)

Estimated CAGR in Net Profit over next 10 years 12%
Estimated Net Profit after 10 years (Rs Cr) 7,206
Current P/E (x) 15.5
Exit P/E in the 10th year from now (x, Estimated) 20.0
Esti. Market Cap (10th year from now; Rs Cr) 144,118
Cost of Capital/Discount Rate 12%
Discounted Value (Rs Cr) 46,402
Current Market Cap (Rs Cr) 35,955

Note: See explanation of this model here

Model
Mar/21 Mar/22 Mar/23 Mar/24 CAGR (9-Yr) CAGR (5-Yr)
971 1,070 1,623 2,320 12% 1%
7% 9% 13% 17%
5% 5% 7% 10%
L&T FINANCE LTD
SCREENER.IN
Narration Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24
Sales 2,988 3,138 3,432 3,243 3,223 3,214 3,534 3,672 3,784 4,019
% Growth YOY 8% 2% 3% 13% 17% 25%
Expenses 1,388 1,236 1,356 1,309 1,270 1,331 1,375 1,621 1,482 1,575
Operating Profit 1,600 1,902 2,076 1,934 1,953 1,882 2,159 2,051 2,302 2,444
Other Income 187 165 -448 202 153 268 47 6 0 5
Depreciation 27 27 28 29 30 28 29 28 28 33
Interest 1,413 1,438 1,501 1,445 1,364 1,325 1,353 1,335 1,351 1,476
Profit before tax 346 601 99 662 714 797 824 694 922 940
PBT Margin 12% 19% 3% 20% 22% 25% 23% 19% 24% 23%
% Growth YOY 106% 33% 730% 5% 29% 18%
Tax 85 195 -354 246 183 203 185 141 237 243
Net profit 262 406 454 501 531 595 640 554 686 696
% Growth YOY 103% 46% 41% 11% 29% 17%
OPM 54% 61% 60% 60% 61% 59% 61% 56% 61% 61%
COMPANY NAME L&T FINANCE LTD
LATEST VERSION 2.10 PLEASE DO NOT MAKE ANY CH
CURRENT VERSION 2.10

META
Number of shares 249.43
Face Value 10
Current Price 144.15
Market Capitalization 35954.89

PROFIT & LOSS

Report Date Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 6456.09 7439.86 8531.58 10214.55 13364.93 14104.12
Raw Material Cost
Change in Inventory
Power and Fuel 7.87 8.44 5.87 7.76 8.61 8.08
Other Mfr. Exp 35.37 45.34 59.24 510.99 1243.16 429.58
Employee Cost 354.95 490.86 499.18 413.57 829.1 1066.44
Selling and admin 502.79 474.73 400.93 368.85 570.03 606.01
Other Expenses 724.19 959.39 1810.73 2006.64 726.42 2050.06
Other Income 16.15 7.8 25.93 48.7 -3.73 369.96
Depreciation 95.5 82.81 67.3 51.93 49.62 81.59
Interest 3576.74 4133.42 4635.36 5457.75 6882.28 7552.24
Profit before tax 1174.83 1252.67 1078.9 1445.76 3051.98 2680.08
Tax 324.1 398.98 36.44 168.24 819.95 979.82
Net profit 854.68 856.69 1042.19 1254.68 2226.3 1700.17
Dividend Amount 137.62 140.27 140.46 199.57 199.88 180.43

Quarters
Report Date Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23
Sales 2988.4 3138.1 3432.49 3242.86 3223.32 3213.84
Expenses 1388.47 1236.26 1356.17 1308.57 1269.85 1331.44
Other Income 186.92 164.52 -448.06 201.57 153.46 268.23
Depreciation 27.35 27.09 28.27 28.53 29.59 28.33
Interest 1,413.20 1,438.46 1,500.69 1,444.89 1,363.76 1,324.91
Profit before tax 346.3 600.81 99.3 662.44 713.58 797.39
Tax 85.13 195.24 -353.51 245.51 183.06 203.17
Net profit 262.1 406.43 453.64 501.08 530.93 595.11
Operating Profit 1599.93 1901.84 2076.32 1934.29 1953.47 1882.4

BALANCE SHEET
Report Date Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Equity Share Capital 1720.29 1753.4 1755.72 1995.68 1998.81 2004.83
Reserves 4656.19 5323.68 6020.15 9411.06 11449.79 12687.59
Borrowings 43,454.03 52,829.06 61,024.45 75,248.28 91,506.98 93,934.07
Other Liabilities 2911.66 3893.21 3710.88 1117.4 1094.33 902.07
Total 52742.17 63799.35 72511.2 87772.42 106049.91 109528.56
Net Block 1183.83 1312.67 1229.87 1150.72 1127.3 1100.07
Capital Work in Progress 173.55 22.42 27.89 19.34 38.65 62.04
Investments 2649.22 3,563.27 6011.53 5301.49 8640.81 5979.27
Other Assets 48735.57 58900.99 65241.91 81300.87 96243.15 102387.18
Total 52742.17 63799.35 72511.2 87772.42 106049.91 109528.56
Receivables 21.37 26.69 78.85 126.44 106.37 64.74
Inventory
Cash & Bank 862.33 401.53 594.38 1108.53 1874.15 7804.4
No. of Equity Shares 1720285900 1.753E+09 1.756E+09 1.996E+09 1.999E+09 2.005E+09
New Bonus Shares
Face value 10 10 10 10 10 10

CASH FLOW:
Report Date Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Cash from Operating Activity -6473.63 -9212.65 -5779.41 -15639.71 -11643.45 2161.76
Cash from Investing Activity 2.37 -674.62 -2117.54 1548.8 -3587.48 159.75
Cash from Financing Activity 6552.35 9426.4 7952.1 14677.8 16008.19 1450.53
Net Cash Flow 81.09 -460.87 55.15 586.89 777.26 3772.04

PRICE: 58.41 59.39 115.01 146.12 141.89 47.71

DERIVED:
Adjusted Equity Shares in Cr 211.55 215.62 215.91 245.41 245.80 246.54
DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-21 Mar-22 Mar-23 Mar-24

13352.85 11929.7 12774.95 13580.58

6.29 6.49 6.13 7.12

736.46 1454.35 1047.06 895.2
941.12 1099.1 1409.89 1808.9
714.18 945.62 1197.57 1468.31
3003.12 1727.46 4277.63 1344.5
836.12 593.83 2795.09 473.91
85.66 102.64 111.24 114.77
7230.15 5765.01 5,811.67 5,386.66
1471.99 1422.86 1708.85 3029.03
523.11 373.62 172.37 711.9
970.94 1070.11 1623.25 2320.1
123.7 495.93 622.24

Dec-23 Mar-24 Jun-24 Sep-24

3533.96 3671.77 3784.4 4019.34
1374.6 1620.55 1482.49 1574.88
47.3 5.55 0.21 4.68
29.19 27.66 28.44 33.29
1,353.43 1,335.09 1,351.41 1,476.28
824.04 694.02 922.27 939.57
184.67 141 237.02 242.89
640.18 553.88 685.51 695.58
2159.36 2051.22 2301.91 2444.46

Mar-21 Mar-22 Mar-23 Mar-24

 2469.45 2474.04 2479.67 2488.94
16303.75 17473.66 19048.7 20949.5
88,591.57 85,236.76 83,104.90 76,603.45
1581.99 1695.92 1705.53 2651.95
108946.76 106880.38 106338.8 102693.84
1138.29 508.81 552.52 519.35
23.84 21.81 4.81 35.62
8872.13 11916.94 14366.2 12384.89
98912.5 94432.82 91415.27 89753.98
108946.76 106880.38 106338.8 102693.84
47.31 15.92 5.88 247.28

8426.97 7970.42 12748.91 4676.02

2.469E+09 2474035488 2479671117 2488940310

10 10 10 10

Mar-21 Mar-22 Mar-23 Mar-24

5464.3 6078.06 6718.25 673.47
-2024.52 -5086.86 -861.74 848.62
-2090.68 -3023.01 -1663.81 -7037.42
1349.1 -2031.81 4192.7 -5515.33

95.85 80.6 82.05 158.25

246.94 247.40 247.97 248.89

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