Sharekhan has given Buy recommendation for LIC Housing Finance with a target price of Rs. 450 in its research report issued on Jan 29, 2021
Sharekhan’s research report on LIC Housing Finance
Q3FY21 results were encouraging; operational numbers was largely in line with expectations. Margins slightly expanded q-o-q while reported asset quality improved. Disbursements are encouraging and have reverted to pre-COVID levels; collection efficiency for non-moratorium customers stood at 98% for December (from 96% in September). Strong borrowing profile aided by parentage and conservative LTVs; valuations reasonable at 0.97x/0.84x its FY2022E and FY2023E ABVPS.
Outlook
We maintain a Buy on stock with a revised PT of Rs. 450.
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