L & T Stock Price

History of Larsen & Toubro (L&T):

In the year 1938, two engineers Henning Holck Larsen and Soren Kristian Toubro are the two engineers who founded Larsen & Toubro in India. The organization began as a Danish manufacturer representative of dairy equipment. In 1939, during the Second World War, there were restrictions on imports, and that is when the partners opened a tiny workshop for undertaking jobs and providing service facilities. When Germany invaded Denmark in the year 1940, the supply of the Danish products stopped. The ships needed repair and L&T were given an opportunity. Thus, the Hilda Limited was formed for handling these operations. Repair and fabrication of vessels were also being done which marked the expansion of the organization.

In the year 1944, the partners established ECC, and at that time the organization focussed much on the construction projects. At present, ECC is Larsen & Toubro's construction division. After India was free from the British Rule, Larsen & Toubro set up their branches in Kolkata, Chennai, and New Delhi. In the year 1948, the Mumbai office was established. In the year 1950, L&T turned into a public company with a paid-up capital of Rs.20 lakh. The sales turnover for Larsen & Toubro stood at Rs.1.09 crore that year.

Information About L&T Ltd:

Larsen & Toubro Limited (L&T) is an Indian multinational organization headquartered in Mumbai, Maharashtra. Larsen and Toubro have its business spread out in different sectors like manufacturing goods, construction, engineering, IT, and financial services. The wholly owned subsidiaries of Larsen & Toubro include Larsen & Toubro Infrastructure Finance Company Limited, Larsen & Toubro Finance Limited, Larsen & Toubro Investment Management Limited, Larsen & Toubro Capital Markets Limited, and Larsen & Toubro Housing Finance Limited.

The finance arm of Larsen & Toubro is listed on both BSE and NSE. It is also registered as an NBFC and designated as a CIC under RBI. The different subsidiaries mentioned above are the channels through which Larsen & Toubro carries out its business. The brand name of Larsen & Toubro Finance Holdings Limited is L&T Financial Services.

Management of Larsen & Toubro:

Mr. S. V. Haribhakti:

The Non-Executive Chairman of L&T Financial Services is Mr. Shailesh Haribhakti. He is a fraud examiner, cost accountant, CA, financial planner and a certified internal auditor. He has experience of 4 decades, and he has led different innovative services successfully. His passion and focus at present is digitization, governance and engaged investing.

Mr. Dinanath Dubhashi:

Mr. Dinanath Dubhashi holds the post of the CEO and MD at Larsen & Toubro Finance Holdings. He has immense experience in different domains of financial services like cash management, corporate banking, retail lending, credit rating, and rural financing. Since the year 2007, he has been working with Larsen & Toubro Financial Services. He has helped the company grow by scaling up retail business operations. Under the leadership of Mr. Dubhashi, there has been inorganic growth and organic growth for the retail business.

Mr. R. Shankar Raman:

Mr. R. Shankar Raman holds the post of CFO at Larsen & Toubro Financial Services. Mr. Raman is a Non-Executive Director on the Larsen & Toubro board. In the year 1994, he had joined the Larsen & Toubro Group. He has an experience of around 35 years in the finance and management sector. He is a CA and attained a Commerce degree from Madras University.

Mr. P. V. Bhide:

Mr. Bhide has played the significant role in different capacities while he was on several government positions. He has experience of nearly four decades. Some of Mr. Bhide's functions include Finance Ministry, Secretary of the Department of Revenue; Disinvestment department, Joint Secretary, and Secretary, Finance Ministry; Home Affairs Ministry, Additional Secretary. Mr. Bhide is a retired IAS officer.

Mr. Kailash Kulkarni

Mr. Kulkarni is the Chief Executive of Investment Management and the Marketing Group Head. He is responsible for driving the business growth. He also leads the marketing initiative for Larsen & Toubro Financial Services. The Investment Management department of L&T has grown substantially under his leadership. He has an experience of more than 25 years. Before joining L&T, he led the Sales department at Kotak Mahindra Asset Management.

Mr. Sachin Joshi

Mr. Joshi designated as CFO with L&T Financial Services Ltd. He has more than 27 years of experience in crisis management, risk and credit control, public listing, strategic planning, business and treasury operations and human resource management. Mr. Joshi worked with Aditya Birla Finance as the CFO before joining L&T and headed verticals including Admin, Treasury, Finance, etc. He is a Cost Accountant as well as a Chartered Accountant.

L&T Finance Listing and Indices:

Some of the indices in which L&T Financial Services are listed, mentioned below:

  1. Nifty 100
  2. Nifty 200
  3. Nifty 50
  4. Nifty 500
  5. Nifty Auto
  6. S&P BSE 200
  7. S&P BSE 500

The company is also listed on various stock exchange markets. Some of these are mentioned below:

  1. National Stock Exchange of India Limited (NSE)
  2. The Stock Exchange, Mumbai (BSE)
  3. Calcutta Stock Exchange Association Limited
  4. Delhi Stock Exchange Association Limited

Listing code of L&T:

  1. BSE – 533519
  2. NSE - L&TFH
  3. ISIN - INE498L01015
  4. Sector - FINANCE-INVESTMENTS

Wealth and Performance of Larsen & Toubro Finance:

The sales turnover as of March 2017 for L&T Finance Holdings stood at more than Rs.277 crore. The other income of the organization during that year was above Rs.37 crore. The total revenue of the company went to a little more than Rs.314 crore.

In 2017, the employee cost of the organization was Rs.11.57 crore. Admin and Selling expenses together came up to a Rs.0.26 crore. The miscellaneous costs for Larsen & Toubro Finance stood at Rs.11.99 crore. The total loss for the organization was Rs.23.82 crore in 2017.

The sales turnover of L&T Finance went up to Rs.348.50 crore In 2016. Other Quarter income in the year 2016 went up to more than Rs.78 crore. So, the total revenue of the company stood at above Rs.427 crore.

The employee cost has substantially higher in 2016 when compared to 2017. It went up Rs.20.33 crore. Admin expenses and Selling expenses together stood at Rs.1.20 crore. The miscellaneous costs for L&T Financial Services were Rs.10.62 crore, slightly lesser as compared to 2017. However, the total expenditure in 2016 was more than Rs.32 crore, which is approximately Rs.10 crore more than the amount spent in 2017.

In 2015, Rs.290.62 crore was the net sales turnover for L&T Finance Holding Ltd. Other revenue rose to an amount of Rs.36.31 crore. Thus, the total income of the organization held at Rs.326.93 crore.

The total expenses of the company held at Rs.35.53 crore, out of which Rs.17.04 crore was the employee cost of L&T Finance, and Rs.18.49 crore was the miscellaneous expenses. No expenses were reported in 2015 associated with Admin and Selling.

Stock Trends of L&T Finance in 2018:

On 1 January 2018, the Open Price of L&T Finance stocks was Rs.177.50 at Bombay Stock Exchange and Rs.174.00 at National Stock Exchange. The Close Price, held at Rs.172.90 at both BSE and NSE.

By the month end, the Open Price dropped slightly at both BSE and NSE, and it held at Rs.175. The Close Price remained the same at both BSE and NSE. On 31 January 2018, the High Price for L&T Finance Holdings stocks was recorded at Rs.177.60 at BSE and Rs.177.65 at NSE.

On the first day of February, the Open Price of the stocks stood at Rs.173.15 at NSE and Rs.173 at BSE. The Close Price was recorded at Rs.171.25 and Rs.171.05 at BSE and NSE, respectively. The High Price was Rs.175.50 at both NSE and BSE.

By the end of February 2018, the Open Price went down to Rs.164 at BSE and Rs.163.75 at NSE. The Close Price at BSE stood at Rs.162.55, whereas at NSE, it was Rs.162.30. The High Price rose at Rs.164.25 and Rs.164.20 at BSE and NSE, respectively. On 28 February 2018, the Lowest Price for the stocks was Rs.161.40 (BSE) and Rs.161.10 (NSE).

Should You Invest in L&T Finance stocks?

Larsen & Toubro Finance Holdings is a prestigious organization and registered under the RBI. Since Return on equity has been the focus of the organization, the prices of the shares have been doubled. Investment towards L&T Financial Services stocks can be considered for a long term.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, more popular as BSE, is the first and oldest stock exchange in Asia. Premchand Roychand, an influential stockbroker and businessman, ventured into this ambitious journey in 1855 with around 20 associates. They organized meetings at several outdoor locations before finally finding a permanent place in Mumbai’s Dalal Street. BSE was thus formally established in 1875. The exchange chiefly facilitated floor trading for a century before adopting an automated digital platform in 1995. The company has grown enormously ever since and has joined the United Nations Sustainable Stock Exchange as a partner exchange in 2012. BSE has also opened India's first international exchange, known as INX, in 2016.

National Stock Exchange (NSE)

NSE was mainly a Government of India initiative that aspired to bring transparency to the Indian capital market. A group of leading Indian financial institutions, upon the government's instruction, joined their resources to set up the exchange. Established in 1992, NSE was the first demutualized electronic exchange of India. It was the first exchange in India that operated on an entirely automated, digital screen-based electronic trading system. The platform offered an easy trading facility and connected the investor base of the entire country. NSE has immensely expanded ever since and currently extends its services to various segments, such as equity derivatives, trading, debt and currency derivatives, clearing and settlement services in equity, etc.

NIFTY Index

Launched on 1st April 1996, the NIFTY is NSE's flagship index that helps investment managers in tracking the behavior of a portfolio of certain companies. The list includes 50 companies from 12 different sectors out of the 1600 companies registered under the NSE. These are the 50 blue-chip companies owning the largest and most liquid Indian securities. Therefore, it is popularly referred to as the Nifty 50 and the index symbolizes the weighted average of the stock value of these 50 companies. The Nifty exposes investors to the Indian market through one efficient portfolio. The IISL or India Index Services and Products is a specialized company that focuses on an index as a core product and it owns as well as manages the Nifty.

SENSEX Index

Just like NSE's Nifty 50, BSE's stock market index is called Sensex. The word 'Sensex' is a combination of the words 'Sensitive' and 'Index.' It is also known by the names of BSE 30 and S&P BSE SENSEX. It comprises of 30 well-established and financially thriving companies among the ones listed on BSE. These 30 companies represent diverse industrial sectors of the Indian economy and have the largest as well as most actively traded stocks. SENSEX is extensively reported in national and international markets, through both print and electronic media. It has a scientifically designed indexing system which is based on internationally accepted construction and review methodologies. Since September 2003, a free-float market capitalization methodology is applied to calculate Sensex.