Excess return on book · base FY26
L&T FINANCE LIMITED
This note states the assumptions and the arithmetic of one model of L&T FINANCE LIMITED, built on its filed FY26 consolidated statements. The value is the outcome of the assumptions below and nothing else; it is not a fair value, a target or a recommendation.
Assumptions
| Input | This model | Filed reference |
|---|---|---|
| Return on opening book equity | 10.6% a year | FY26 ROE 10.6% |
| Payout | 23% of profit | FY26 23% |
| Cost of equity | 16.85% (Rf 5.08, β 1.61, ERP 7.31) | 1-yr beta 1.61 |
| Terminal growth | 5% flat | — |
| Net debt · non-controlling interest · non-operating investments | ₹(4,489) · ₹0 · ₹0 cr | FY26 net debt ₹(4,489) cr |
| Shares | 250.44 crore | 250.44 crore today |
From enterprise to equity
| Book equity, FY26 | 28,034 |
| PV of 5 years of excess return | (6,985) |
| PV of the terminal excess return | (9,754) |
| less non-controlling interest | 0 |
| add non-operating investments | 0 |
| Equity value | 11,295 |
| ÷ 250.44 crore shares | ₹45 |
Statement
This note is the reader's own model over publicly filed information: SEBI results XBRL filed with BSE and NSE and exchange price data, assembled by MarketPing software; every assumption above is the reader's. It contains no research recommendation, no price target and no opinion by MarketPing on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Historical per-share figures are on the current share count. Where a figure is unavailable the table shows a dash rather than an estimate. Nothing here constitutes investment advice, an offer or a solicitation.