Moneycontrol PRO
you are here: HomeNewsBusiness

Reduce LIC Housing Finance: target of Rs 387: Prabhudas Lilladher

Prabhudas Lilladher recommended reduce rating on LIC Housing Finance with a target price of Rs 387 in its research report dated October 22, 2021.

October 26, 2021 / 11:10 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on LIC Housing Finance


LICHF’s Q2FY22 earnings stood mixed. While low base led to both business (interest income falling 3% QoQ, loans up 2.2%QoQ) and asset quality improvement QoQ (stage 3 lower by 79bps QoQ to 5.14%), the elevated interest reversals on OTR accounts (Rs2.5bn) and one-time operating costs (actuarial impact Rs450mn) proved as a dampener. while individual Home loan NPAs at 2.2% stood down 4bps QoQ, developer NPAs at ~24% stood stagnant with negligible resolutions during the quarter.


Outlook


 We reiterate REDUCE rating shifting our target multiple to Sep’23E and maintain closer to 1x PABV as re-rating is clearly a function of sustenance of healthy asset quality show. Our price target now stands at Rs 387 (earlier Rs390).


For all recommendations report, click here

Close

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.

Broker Research
first published: Oct 26, 2021 11:10 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark