LIC Housing reported a slightly subdued performance with NIMs of 2.5%, leading to a muted 9% YoY NII growth. Overall GNPAs rose to 0.72% (0.43% in FY17) with individual GNPAs rising to 0.42% (0.20% in FY17) owing to seasonality. PAT improved by 15% YoY to Rs 470cr. Strong earnings visibility, stable asset quality and sustained loan growth support our positive view on the stock.