Sharekhan has given Buy recommendation for LIC Housing Finance with a target price of Rs. 610 in its research report issued on Jun 16, 2021
Sharekhan’s research report on LIC Housing Finance
We maintain a Buy rating on the stock of LIC Housing Finance with a unchanged PT of Rs. 610. For Q4FY21, the company posted mixed results where high provisioning dented profitability, even as healthy growth on disbursements and loan growth was seen. Strong business traction was seen with strong disbursements led by individual home segment, thus aiding AUM growth. Asset quality wise the performance was sobering, with Stage 3 assets saw significant spike which impacted profitability.
Valuations at 1.2x/1.05x its FY2022E and FY2023E ABVPS are reasonable considering its high return ratios.