L&T Finance has received the highest share price target on the street, with Macquarie turning bullish on the lender on the back of what it views as a 'valuation discount'.

Macquarie is confident that L&T Finance can deliver 28% earnings-per-share (EPS) compound annual growth rate (CAGR) between financial years 2026 and 2029, CNBC-TV18 reported.

The brokerage's stance on the shares, as reported by CNBC-TV18, is a buy recommendation, and its price target now stands above every other published target among analysts covering the stock, making it the most optimistic view on the street. The bull case rests on the combination of the projected earnings trajectory and a valuation that Macquarie judges to be at a discount. Because brokerages build targets on differing assumptions about growth, margins and asset quality, published targets for the same stock can vary widely, and a street-high call marks the top of that range rather than a consensus view.

A 'valuation discount' typically describes a stock that trades at cheaper valuation multiples than its peers, or than its own growth profile might otherwise warrant. For lenders such as non-banking financial companies (NBFCs), market participants commonly benchmark valuations using price-to-book multiples alongside profitability and asset-quality metrics.

L&T Finance Holdings Ltd is the financial services arm of the Larsen & Toubro group, one of India's largest engineering and construction conglomerates. The Mumbai-headquartered lender is a retail-focused NBFC offering products such as farm equipment and two-wheeler loans, home loans and small-business loans. In recent years, the company has been reshaping its loan book away from wholesale and infrastructure lending toward retail products, a segment where performance is typically tracked through indicators such as disbursement growth, assets under management and loan-loss provisions. Like other NBFCs, the company is regulated by the Reserve Bank of India, which has tightened norms for the sector in recent years through its scale-based regulation framework. Its shares are listed on the National Stock Exchange (NSE) and BSE.

Macquarie is a Sydney-headquartered global financial services group whose equity research arm publishes ratings and price targets on Indian stocks. Brokerage price targets represent analysts' own estimates and do not guarantee future share performance, and the company's quarterly results and periodic loan-book disclosures are the observable checkpoints against which Macquarie's projections can be tracked over time.

This article is based on a CNBC-TV18 report published on August 19, 2026. Brokerage recommendations reflect the views of the issuing firm and do not constitute investment advice.