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.
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.
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