Brokerage firm believes LFHL is a pure play in the burgeoning high growth business segments like infrastructure financing and construction equipment, transportation equipment financing space.
The report says, "We are positive on the business outlook on the Diversified and balanced mix of LFHL businesses. With the above rationale like Strong brand, track record and management expertise this IPO is being launched to unlock value for the shareholders of the parent L&T Company, besides not burdening the parent for future funds. When compared with its peers in the same segment on P/BV basis Shriram Transport and M&M Finance are trading at 3.2x and 2.8x as on date, while LFHL has arrived with competitive pricing model ranging between Rs 51–59 which is below its peers considering the post IPO money and Hence, we recommend investors to subscribe for the IPO."
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