LIC Housing Finance Q3 Results Review - Soft Disbursement Growth; Asset Quality Improves: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.LIC Housing Finance Ltd.’s Q3 FY24 results were flat vs our estimates, aided by resilient net interest margins and controlled opex. NIM stood at 3.0% (higher than company guidance of 2.6%-2.8% in FY24). Disbursements remained soft due to technological upgrades and management restructuring; company expects a loan book growth of ~10% in FY24 while we build in ~9%.Asset quality improved significantly, with gross stage III reducing to 4.26% (versus 4.33% in Q2) driven by a concerted recovery effort. Expect additional resolutions to come through in Q4. We maintain an 'Accumulate' rating on LIC Housing Finance; however ascribe a higher multiple of 1.1 times Dec 2025E adjusted book value per share resulting in a target price of Rs 620 (versus Rs 470 at 0.9 times Sept 2025E ABVPS earlier). We expect assets under management to clock a compound annual growth rate of ~11% over FY23-FY25E and expect return on asset/return on equity at 1.6%/15.4% for FY25E..Click on the attachment to read the full report:.LIC Housing Finance Q3 Profit More Than Doubles To Rs 1,163 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

LIC Housing Finance Q3 Results Review - Soft Disbursement Growth; Asset Quality Improves: Nirmal Bang

Expect FY24 to be a year of consolidation

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