LIC Housing Finance Q4 Results Review - Re-Rating Hinges On Higher Loan Growth: Prabhudas Lilladher

"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..Prabhudas Lilladher Report.LIC Housing Finance Ltd. saw a good quarter. Positives were-adjusted net interest margin beat our estimate by 10 basis points and asset quality improved, as despite sharp fall in stage-III due to TWO, PCR improved QoQ led by additional management overlay of Rs 1 billion. Aberrations which marred Q4 FY24 earnings were-wage revision and gratuity,publicity costs andhigher tax rate due to deferred tax liability. While disbursals were muted in FY24 company guided to achieve double digit loan growth in FY25 (4.3% in FY24). LIC Housing Finance needs to consistently deliver on its credit guidance; due to competition from banks especially in prime housing, we are factoring 7% loan CAGR over FY24-26E. Given return on asset of 1.5-1.6%, valuation at 1.0 times seems attractive although we see PAT CAGR of 2.6% over FY24-26E and re-rating would hinge on better loan growth and earnings quality. We raise adjusted book value for FY25/26E by 7% each led by reduction in gross non-performing asset. Maintaining multiple at 1.0x, as we roll forward to Mar’26 ABV, our target price increases to Rs 660 from Rs 540. Retain ‘Hold’..Click on the attachment to read the full report:.LIC Housing Finance Q4 Results: Net Profit Down By 7.5% To Rs 1091 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 Q4 Results Review - Re-Rating Hinges On Higher Loan Growth: Prabhudas Lilladher

One-time staff and marketing costs and deferred tax liability offset by better net interest margin/asset quality.

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LIC Housing Finance Q4 Results Review - Re-Rating Hinges On Higher Loan Growth: Prabhudas Lilladher

One-time staff and marketing costs and deferred tax liability offset by better net interest margin/asset quality.

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