COC Project: L&T FINANCE HOLDINGS

1. What is the rating, if any, of your company's bonds?

Credit Analysis and Research (CARE) and ICRA limited the bonds of L&T Finance
Holdings as AA+. Other major credit rating companies like CRISIL have not rated the
bonds of this company.
2. What is the cost of debt of your company? How did you arrive at this figure?

3. How much debt does your company have?

The total debt L&T Finance Holdings has as on 31st March, 2016 is Rs. 76,737.40 lakhs.
4. What is the market-value of equity of your company?
5. What is the Debt/Equity percentage (ratio) of your company?
Debt Equity ratio of L&T Finance Holdings is 0.47 .
6. What is the Debt/Equity percentage of your company's competitors?
Competitors
Debt/Equity ratio

Muthoot Finance Ltd

2.43

Reliance Capital
1.31

7. How does your company's Return on Assets compare with those of its competitors?

8.

Company

L&T Finance
Holdings

Muthoot Finance
Ltd

Reliance Capital

Return on Assets

6.34

2.99

2.68

How does your company's Interest Coverage compare with those of its competitors?
Company

L&T Finance
Holdings

Muthoot Finance
Ltd

Reliance Capital

Interest
Coverage

1.30

1.58

1.61

9. Would your company's bonds be rated better or worse than an average competitor? Why?
Company
Bond Rating

L&T Finance
Holdings
AA+
(stable)

Muthoot Finance
Ltd
AA-

Reliance Capital
AAA

10. What is the company's P/E Ratio? Is it higher or lower than that of its competitors? Why?
Company
L&T Finance
Muthoot Finance
Reliance Capital
Holdings
Ltd
P/E Ratio
21.37
13.34
9.58
L&T Holdings P/E ratio is 21.37 is higher than its competitor because of the following
reasons:
1. It has better profit margin than its competitors.
2. From FY2012 FY2016 net revenue from operations over this period grew at a
CAGR of ???
11. What has been the dividend-yield of your company's shares?
12. What has

been the capital-gains-yield on your company's shares?

13. What has been the average growth in annual dividends during the last five years or so?
FY
Dividend/
Share
(Rs.)
Growth
in
Dividend

2016
0.8

2015
0.8

2014
0.75

2013
0.75

2012
0

2011
0

0.67

14. What has been the average growth in annual EPS during the last five years or so?
FY
Basic
EPS
(Rs.)
Growth
in EPS

2016
1.25

2015
0.88

2014
0.70

2013
1.81

2012
0.44

2011
0

0.42045

0.25714

-0.61326

3.1136

15. What has been the company's average Payout Ratio during the last five years or so?
FY
Dividend
Payout Ratio
(NP) (%)
Dividend
Payout Ratio
(CP) (%)

2016
37.1
0

2015
52.60

2014
65.62

2013
41.35

2012
0.00

2011
-

37.0
9

52.57

65.59

41.34

0.00

16. What has been the company's reported book Return on Equity (ROE)?
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