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Brokerage house JP Morgan has initiated coverage on L&T Finance Holdings with a 'neutral' rating, saying that the stock was fully valued at current levels.
L&T Finance shares were up 4 percent at Rs 85, as the market is betting that the company's impending application for a banking licence will be approved by the Reserve Bank of India.
"A strong brand, access to L&T's vendor/customer network, lending portfolio that spans across multiple facets of retail, corporate and infrastructure lending and management that has considerable experience in incubating long gestation projects are some of the key strengths of the business. A unique Holdco (holding company) structure also allows for efficient capital allocation in the underlying operating companies," the JP Morgan note to clients said.
"Further, the company in our view is a front-runner for a new banking licence as and when it gets awarded. The stock is fully valued at the current share price, in our view," the note said. JP Morgan has a price target of Rs 80 on the stock.
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