L&T Finance Ltd (LTF) saw its share price surge by about 9 % on November 7, 2025, rising to a fresh high of approximately Rs. 300.60 despite a broadly weak market backdrop.
So far in the calendar year, the stock has gained roughly 122 %, far outpacing the BSE Sensex’s 5.5 % rise.
The sharp rally is attributed to a combination of factors: LTF reported its highest‑ever monthly retail disbursal in October 2025 at Rs. 8,009 crore — up 39 % y‑o‑y — with urban finance rising 49 % and rural finance 42 %.
The company’s retail loan book expanded to about Rs. 1.04 trillion (+18 % y‑o‑y) and the total AUM rose to Rs. 1.07 trillion (+15 % y‑o‑y).
Key drivers include its diversified and largely retail‑oriented business (97 % of book is retail), strong presence in rural, two‑wheeler and farm equipment finance (~55 % of lending), and a strategic push into the gold loan segment — a high‑yield, secured category growing at 20 %+ CAGR.
In addition, LTF is emphasising technology‑led processes, with initiatives like the AI underwriting platform “Cyclops”, and portfolio engine “Nostradamus”, reinforcing the “risk‑first, tech‑first, multi‑product retail financier” strategy.
Brokerage firm Motilal Oswal has reaffirmed a positive stance on LTF, based on its business momentum and improving asset quality outlook.
Despite the broader market weakness, LTF’s robust performance, growth in disbursals, portfolio diversification and strategic expansion into new products have convinced investors of its potential to deliver.
