LIC Housing Finance Ltd. share price target

LIC Housing Finance’s (LICHF) 1QFY17 net profit grew 6.7% YoY to INR4.1b, (8% miss). While net income was in line with estimates, higher one-off provision of INR920m due to ageing corporate accounts and one-off provision of INR300m in opex led to lower-than-expected PAT.Loan growth of 15.4% YoY (+1.8% QoQ) was led by non-core assets. While retail mortgage grew 9% YoY and 1% QoQ, LAP book growth stood at +100% YoY due to a lower base and continued traction in the segment, and the share of LAP stood 9.3% (+50bp QoQ). Developer loans grew at a healthy rate of +38%, with their share in overall loans increasing to 2.95% from 2.45% in the year-ago period. Overall disbursements grew 23% YoY to INR75.4b. Motilal Oswal largely maintain their estimates; the stock is trading at 2.1x FY18 BV,upgraded TP to Rs 627 and Maintain Buy.

Trendlyne has 18 reports on LICHSGFIN updated in the last year from 7 brokers with an average target of Rs 571.3. Brokers have a rating for LICHSGFIN with 1 downgrade,5 price upgrades in past 6 months and 1 price downgrades and 6 price upgrades in past 1 Year.

LICHF loan book grew (15.4%YoY, 1.8%QoQ) to INR 1274bn in 1QFY17 led by growth in individual loan portfolio (14.9%YoY, 1.7%QoQ) and project loans (36.6%YoY, 7.4%QoQ). Consequently, the share of individual and project loans stood at 97.1% and 2.9% of the overall portfolio respectively. LAP's share in the overall portfolio has grown by 50bps and is...

LICHF loan book grew (15.2%YoY, 6.5%QoQ) to INR 1251bn in 4QFY16 led by growth in individual loan portfolio (15.2%YoY, 6.5%QoQ) and project loans (26%YoY, 11.4%QoQ). Consequently, the share of individual and project loans stood at 97.3% and 2.7% of the overall portfolio respectively. LAP's share in the...

LICHFs NII met expectations, driven by a 19-quarter-high NIM (2.7%, 13bps QoQ) and steady book growth. However, rising competition led to multi-quarter high repayments, even as disbursals grew 57% QoQ. Rising proportion of high-yielding LAP and project finance (along with the decline in CoF), supported NIM. Asset quality improvement was a seasonal phenomenon.

LIC Housing Finance's (LICHF) 4QFY16 net profit grew 18% YoY to INR4.48b (7% miss). While the spreads and margins improved by 33/23bps YoY; lower than expected loan growth of 15.5% (led by higher repayments) coupled with higher...

Valuation: The stock is currently trading at P/BV of 1.7X, P/E of 9.1X FY18E. Strong traction in loan book growth and healthy asset quality are amongst the key positives. With, wholesale rates benign, LICHF will be a key beneficiary. We maintain the target price at INR 574/share implying a P/BV of 2.3X on FY17E. We rate the stock an OUTPERFORMER....

For 3QFY2016, LIC Housing Finance (LICHF) reported an earnings growth of 21.7% yoy with healthy growth of 35.0% yoy in net interest income, led by healthy growth in advances and stable margins. NII rises yoy; Impressive NIMs LICHFs loan book grew at a healthy pace of 15.2% yoy to Rs1,17,396cr during 3QFY2016. The individual portfolio, which constitutes 97% of the total loan book, grew by 15% yoy. Loans to the developer segment, which saw a reversal trend from the past quarter, continued its upward momentum growing by 20% yoy to Rs3,091cr. Total disbursements growth was of ~10% yoy. Margins during the quarter were at 2.58% as compared to 2.20% in the corresponding quarter of the previous year. A significant decline in the cost of funds to 9.18% as compared to 9.59% in the corresponding previous year period along with increase in floating rate loans to 40% of the total loan portfolio aided the company in registering a healthy growth in the NIM by 38bp yoy to 2.58%. On the asset quality front, the Gross NPA ratio came in at 0.58% which declined by 2bp qoq, whereas the Net NPA ratio was stable at 0.32%. Provisions rose to Rs34.4cr compared to...

9 NIM improvement was driven by decline in cost of fund and increasing share of portfoliomixtowardshigheryieldingloans. 8 Loangrowthslightlymoderated(15%yoy)duetoslowdownindisbursals(10%yoy)and...

LIC Housing Finances (LICHF) 3Q core earnings beat was driven by steady NIM and loan growth. With higher competition, individual loan repayments were at a multi-quarter high. Rising proportion of high-yielding LAP and project finance, along with the decline in CoF, supported steady spread/NIM. While project loan disbursements continued their steady run, the growth in individual loans was led by the LAP segment. Asset quality, too, remained stable.