L&T Finance Holdings share price falls 5%; Kotak downgrades the stock to a sell; details here
L&T Finance Holdings' share price fell by almost 5 per cent in morning trade on BSE on Tuesday (July 4) in an otherwise positive market. The stock opened at ₹135.95 against the previous close of ₹137.30 and fell 4.88 per cent to the level of ₹130.60. The company in a BSE filing on July 1 informed Dinanath Dubhashi, Managing Director & CEO of the firm will superannuate on April 30, 2024.
It also informed about the appointment of Sudipta Roy as the Chief Operating Officer. Roy will assume the position of Managing Director and CEO with effect from January 24, 2024, after the necessary approvals, the company said. Roy, as per the company's statement, is a consumer banking and payments professional with over 24 years of financial services experience.
He joined L&T Finance Holdings from ICICI Bank, where he served as Group Head and managed diverse businesses like unsecured assets, cards, payment solutions, student ecosystem, e-commerce and merchant ecosystem, millennial banking and API banking. Before his assignment with ICICI Bank in 2010, he worked for Citibank and Deutsche Bank. Meanwhile, Kotak Institutional Equities has downgraded the stock to a 'sell' from a 'reduce' with a revised target price of ₹95 from ₹90 earlier.
The brokerage firm pointed out that L&T Finance Holdings’ stock has rallied recently, likely in anticipation of the management change, implying that Steet is excited about the new CEO. "Apart from limited information on the CEO, we would like to highlight that L&T Finance Holdings' turnaround is a long process due to structural constraints and its profitability cannot change overnight," said Kotak. Shares of L&T Finance Holdings have surged over 93 per cent in the last one year thanks to their low
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