Buy LIC Housing Finance – Target price Rs. 645

Buy LIC Housing Finance – Target price Rs. 645

LIC Housing Finance, which is Vijay Kedia’s favourite stock, has been recommended by PL on the logic that:
“LICHF net earnings of Rs4.99bn were in‐line with our estimates with strong NII growth of 22.6% YoY at Rs9.15bn (PLe: Rs8.82bn) but was offset by lower fee income (down 45% QoQ). Overall loan book grew at 15.3% YoY, but growth was mainly led by strong growth in developer book (45% YoY) and LAP book (87% YoY). Core retail book growth continues to be slow at 9.4% YoY. Competitive landscape continues to be tough with all asset financiers getting into faster interest rate cuts, while cost repricing has been gradual which will keep spreads steady. We retain ‘Accumulate’ with revised PT of Rs645 (from Rs630), based on 2.3x as we rollover to Sep‐18E ABV.”
 LIC Housing Finance Report

UBS and JP Morgan also recommend LIC Housing Finance

Disclaimer

Disclaimer : All information given here is for information purpose only. Users are advised to rely on their own judgement or investment advisor when making investment decisions. This blog is not liable and take no responsibility for any loss or profit arising out of such decisions being made by anyone acting on such advice.