Between FY17-19, higher yielding and riskier non-core segments contributed 45% of incremental AUMs. These non-core segments now form ~24% of the book vs. 16.4% in FY17. LICHF has consciously taken on more risk by favoring non-core (project and LAP) segments, as growth and margins in its core business (retail housing loans) compressed. In spite of this, margins remained flat while asset quality worsened making this an unfavorable trade-off. The alarming rise in delinquent loans may be a harbinger of the stress that follows. We have thus downgraded our multiple to 1.25x from 1.5x An uncharacteristic (of 4Q) deterioration in asset quality, subdued core segment growth, the rising share of riskier loans (and increasing stress) prompt us to downgrade the valuation multiple for LICHF. Maintain NEUTRAL with a TP of Rs 471 (1.25x FY21E ABV of Rs 377) despite the recent correction (-12% in a month).