Sharekhan has given Buy recommendation for LIC Housing Finance with a target price of Rs. 610 in its research report issued on Feb 18, 2021
Sharekhan’s research report on LIC Housing Finance
LIC Housing Finance (LICHF) is an attractive player in the housing mortgage market, with positives such as stable margins going ahead, pick-up in business growth helped by low interest rates, stable property prices, rising affordability and the government’s push to drive demand for housing. Going forward, as corporate credit demand / capex reboot is expected to revive in FY22E, we believe will augur well for HFCs as they may see lower competition from banks. Valuations reasonable at 1.2x/1x its FY2022E and FY2023E ABVPS; we finetune our target multiple considering the business strengths and fundamentals.
Outlook
We maintain a Buy rating on the stock with a revised PT of Rs. 610.