L&T Finance Share Price Target Set at Rs 370 as Nomura Maintains Buy After Q1 Profit Beats Estimates by 8%

The L&T Finance share price target has been set at Rs 370 by brokerage Nomura, which maintained its buy rating on the non-banking financial company after its June quarter net profit beat estimates by 8 percent. The brokerage noted that asset quality trends remain quite encouraging even as the sector navigates a mixed macro backdrop, reinforcing confidence in the medium-term case captured by the L&T Finance share price target and the underlying earnings trajectory of the business over the next few quarterly reporting cycles ahead.

The improvement in the June quarter was led by the two-wheeler lending segment, supported by AI-driven underwriting that has helped the company sharpen credit decisions. Reacting to the note, the L&T Finance stock was quoting at Rs 327.90, up Rs 6.65 or 2.07 percent, having touched an intraday high of Rs 333.40 earlier in the session.

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L&T Finance Share Price Target: Nomura Key Takeaways

Nomura’s note flags both the positives and the risks that will shape the L&T Finance share price target trajectory through FY27 to FY29, giving investors a fuller picture beyond the headline profit beat.

Parameter	Detail
Rating	Buy (maintained)
Target price	Rs 370 per share
Q1 net profit	Beat estimates by 8 percent
Key growth driver	Two-wheeler segment, AI-driven underwriting
Key risks	Monsoon and insurance distribution reforms
EPS revision	FY27-29 estimates raised 2 to 10 percent
Current price	Rs 327.90 (+2.07%)

At the current market price of Rs 327.90, the stock offers an implied upside of around 12.8 percent to Nomura’s L&T Finance share price target of Rs 370, based on the brokerage’s newly revised earnings estimates.

Why Nomura Is Bullish on the L&T Finance Share Price Target

1. Two-Wheeler Segment Driving Growth

The two-wheeler financing business has emerged as a key profit driver, benefiting from strong retail demand and improved underwriting quality. AI-driven credit assessment tools have allowed the company to expand this book while keeping delinquencies in check, a combination that supports a higher L&T Finance share price target.

2. Encouraging Asset Quality Trends

Nomura specifically called out that asset quality trends remain encouraging, which is a critical factor for NBFC valuations and a key input into any L&T Finance share price target model built by covering analysts on the street. Lower credit costs directly flow through to profitability, and sustained improvement here would justify further upward revisions to earnings estimates.

3. Upgraded EPS Estimates Across FY27-29

The brokerage raised its earnings per share estimates for FY27 through FY29 by 2 to 10 percent, reflecting confidence in the company’s medium-term growth and profitability trajectory. Such broad-based upgrades typically support re-rating in the stock over time, and a higher L&T Finance share price target from one large brokerage often prompts peers to revisit their own models.

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Key Risks to the L&T Finance Share Price Target

Nomura flagged two specific risks that could affect the pace of progress towards its target: the monsoon, given the company’s exposure to rural and semi-urban lending where weather patterns influence repayment capacity, and upcoming insurance distribution reforms, which could affect the fee income contribution from cross-selling insurance products.

Investors closely tracking the L&T Finance share price target should carefully and consistently watch monthly disbursement data and delinquency trends over the coming several quarters to validate whether the current momentum, which pushed trading volumes to over 10.65 lakh shares against a five-day average of 5.01 lakh shares, an increase of 112.85 percent, continues to be backed by genuine fundamental improvement rather than short-term positioning by traders. A sustained beat-and-raise cycle across the next two or three quarters would meaningfully strengthen the case for Nomura’s L&T Finance share price target and could prompt further positive upgrades from other leading brokerages that independently track the L&T Finance share price target closely over the coming weeks and months ahead.

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Conclusion

Nomura’s L&T Finance share price target of Rs 370, backed by an 8 percent Q1 profit beat and raised FY27-29 EPS estimates, points to further upside from the current level of Rs 327.90. With the two-wheeler segment and AI-driven underwriting as key growth levers, and the monsoon and insurance reforms as watch points, investors should track quarterly execution closely and consult a SEBI-registered advisor before adding fresh exposure.

Frequently Asked Questions FAQs

What is the L&T Finance share price target set by Nomura?

Ans. Nomura has set an L&T Finance share price target of Rs 370 per share while maintaining its buy rating on the stock.

Why did Nomura maintain a buy rating on L&T Finance?

Ans. Nomura maintained its buy rating after L&T Finance’s Q1 net profit beat estimates by 8 percent, led by strong growth in the two-wheeler segment and encouraging asset quality trends.

What is driving growth at L&T Finance?

Ans. The two-wheeler lending segment, supported by AI-driven underwriting, has been the key growth driver behind the improvement in L&T Finance’s quarterly performance.

What are the key risks to the L&T Finance share price target?

Ans. Nomura flagged the monsoon, given the company’s rural lending exposure, and upcoming insurance distribution reforms as the key risks to watch.

How much did Nomura raise its EPS estimates for L&T Finance?

Ans. Nomura raised its FY27-29 EPS estimates for L&T Finance by 2 to 10 percent following the Q1 results.

How is the L&T Finance share price performing today?

Ans. The L&T Finance share price was trading at Rs 327.90, up 2.07 percent, after touching an intraday high of Rs 333.40 following the Nomura note.