LIC Housing Finance Q4 Results Review: Attractively Priced Stock, Says Nirmal Bang, Maintaining 'Buy'

LIC Housing Finance has guided for a double-digit AUM growth in FY26 and we build in a growth rate of 12% for FY26. Q4 FY25 net interest margins improved by 16bps QoQ to 2.86%. Nirmal Bang expects NIMs to be under pressure due to competition from other banks and NBFCs and the current volatile interest rate scenario. .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 Q4 FY25 reported set of numbers for net interest income / pre-provision operating profit were in line with our estimates (2.9% / -0.3%). PAT was at a variation of -2.9% vs our estimates due to higher than estimated provisions. Disbursements grew by 24% QoQ / 5% YoY with broad-based growth across regions except for the east which forms a smaller part of loan book. The company has guided for a double-digit AUM growth in FY26 and we build in a growth rate of 12% for FY26. Q4 FY25 net interest margins improved by 16bps QoQ to 2.86%. We expect NIMs to be under pressure due to competition from other banks and NBFCs and the current volatile interest rate scenario. We expect NIMs to be 2.7% in FY26. Asset quality trend improved; expect additional resolutions to come through in FY26. We have estimated loan / earnings CAGR of 12% / 10% in FY25-FY27E resulting in RoA /RoE of 1.8% /14.9% in FY27E. Roll forward our valuation to Mar’27 with a multiple of 1x adjusted book value per share (same as earlier) resulting in a target price of Rs 781. Our target multiple is at a 12.6% discount to past five-year average multiple of 1.1x. Maintain Buy as the stock is attractively priced..Click on the attachment to read the full report:.Piramal Pharma Q4 Review: Operationally Inline; FY25 Ends On A Strong Note, Says Motilal Oswal —Maintains Buy.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 Q4 Results Review: Attractively Priced Stock, Says Nirmal Bang, Maintaining 'Buy'

Nirmal Bang expects NIMs to be under pressure due to competition from other banks and NBFCs and the current volatile interest rate scenario.

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