LIC Housing Finance Ltd. share price target

LICHFs 4Q results came in better than expectations, owing to higher growth (64%/28% YoY/QoQ) in the non-core (LAP Project) portfolio, thereby increasing its share to 16.7% (11.5% in 4QFY16). NIM expanded to 2.97% supported drop in COF, which fell 66bps.

ICICI Securities Ltd | Retail Equity Research PAT increased 18% YoY to | 529 crore, in line with estimates. It was mainly led by higher-than-expected NII at | 1040 crore NII growth remained healthy at 26.6% YoY mainly led by 22 bps QoQ improvement in margins to 2.97%. A change in loan mix towards high yielding assets (16.4%) like loan against property (LAP), developer loans and fall in CoF have enabled this improvement Advances traction came in line with estimate at 15.5% YoY to...

LIC Housing Finance's (LICHF) 3QFY17 earnings came broadly in line with expectations with steady loan growth and stable spreads resulting in PAT growth of 19% YoY to Rs 499 cr. Improving spreads, stable asset quality and strong earnings visibility support our positive view on the stock.

LIC Housing Finance (LICHF) reported an in-line PAT of ~Rs 5 bn (up 19.2% YoY) supported by strong NII growth (18.7% YoY). LICHF continued to benefit from a benign interest rate environment, with cost of funds (down 14 bps QoQ) decreasing faster than the decline in yields (down 4 bps). Asset quality..

LIC Housing Finances (LICHF) 3QFY17 performance was largely in line, driven by falling COF. NIM improved to 2.75%. Share of Non-Core segment improved to 13.7% which cushioned the yield drop.

Management highlighted that it is comfortable at the current portfolio mix and going forward it intends to concentrate more on the core mortgage business. LICHF continues to reduce its bank borrowing which carries a high interest cost. Currently, bank borrowing constitutes only 9.2% of total borrowings vs. 32% in FY12. The benefit of low cost borrowings and increasing share of high-yielding LAP portfolio is reflected in NIM...

LICHF came out with a positive set of results for 3QFY2017 with the PAT growing by 19.2% yoy. While we were expecting moderation in business growth, due to demonetization, better result was possible backed by growth in non-retail segment. The core retail portfolio continues to be sluggish growing by less than 10%, however, other segments ..

PAT increased 19.2% YoY to | 499 crore, beating our estimate of | 465 crore, mainly led by higher-than-expected NII at | 915 crore NII growth stayed healthy at 22.6% YoY to | 915 crore. Margins improved 7 bps QoQ to 2.75%. Change in loan mix towards high yielding assets like loan against property & developer loans and fall in CoF have enabled a rise in margins over the past four quarters...

Guarding the positive trend in the core home loan portfolio, LICHFL has been able to fortify its individual loan book by growing at 14.7% y-o-y in the first half. Competitive products and on ground marketing activities have helped it to increase the disbursements by 13.9%. Grabbing the opportunity from the Seventh Pay Commission, it has launched products for central and state government employees at lower rates. Expansion in margins by 12 bps (2.7% vs 2.6%) in the last quarter from increase in share of LAP portfolio (9.7% in H1FY17 vs 8.8% in FY16)...