LIC Housing Finance Ltd. share price target

L continues to be on the core retail business with a major thrust on affordable housing.. The company has launched a number of initiatives to strengthen its core mortgage business that are extremely competitive in the affordable segment. Going forward, the new Pradhan Mantri Awas Yojana (PMAY) scheme for urban development launched by...

LIC Housing reported a robust fourth quarter performance with NIMs of 2.97% (highest since March 2012), leading to a strong 26.6% YoY NII growth. With a well maintained asset quality (G/NNPA 0.43/0.14%), PAT improved by 18/6% YoY/QoQ to Rs 529 cr.

Operating Income grew by 3.26% to Rs. 3642.87 Cr in Q4FY17 when compared to the previous quarter. Also, it grew by 12.21% when compared with Q4FY16.

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...