ICICI Direct's research report on LIC Housing Finance
LIC Housing Finance reported steady Q1FY21 results wherein loan growth was sluggish whereas lower provisions and lower tax rate led to healthy PAT growth. Moratorium book was relatively lower compared to peers. As on June 2020, ~25% of the total loan book was under moratorium while individual loans under moratorium formed 16% of respective portfolio. Moratorium for LAP and developer loans was at 37% and 77%, respectively.
However, higher restructuring and thereby regulatory provisions remain a near term risk. We expect earnings growth at 12% CAGR in FY20-22E to Rs 2961 crore. Valuing the business at ~1x FY22E ABV, we revise our target price to Rs 345/share. We have a BUY recommendation on the stock.
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