Accumulate LIC Housing Finance; target of Rs 649: Prabhudas Lilladher

Prabhudas Lilladher’s research report on LIC Housing Finance

LICHF reported mute performance with earnings of Rs5.4bn in-line with estimates (PLe:Rs5.42bn) on the back of weak NII growth as loan growth was slightly slower and margin pick-up being lower than expected. Core retail disbursement & loan growth was tad better but was muted on LAP, while developer disbursement & loan growth were strong.

Outlook

We do not expect any large asset quality issues leading it to deliver 17-17.5% ROE over FY19-20E. Retain Accumulate with revised PT of Rs649 (down from Rs667) based on 2.0x Mar-20 ABV.

For all recommendations report,click here

Disclaimer:The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *