LIC Housing has target of Rs 332: Jigar Shah

Jigar Shah, Sr VP and HOR, Kimeng Sec India is of the view that LIC Housing Finance has target of Rs 332.

Shah told CNBC-TV18, "On LIC housing Finance what we like is the recovery in earnings this year. We are forecasting a 44% growth in earnings this year because of the improvement in net interest margin. That is because last year they had some of those low rate schemes, which has expired, so they should be getting benefit on the net interest margin this year plus some of the provisions which were made last year were one time in nature and those won’t be repeated this year.”
He further added, “What is more interesting is that they are still having a 25% kind of a loan growth and a strong balance sheet that infuse equity few months back. I think they are all set despite of the overall negativity in the market and we think that a 2 times price to book with ROE of 22-23% the stocks looks attractive. Our target price of Rs 332 is based on price to book of 2.5 times FY13.”