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Buy LIC Housing Finance; target of Rs 345: ICICI Direct

ICICI Direct is bullish on LIC Housing Finance recommended buy rating on the stock with a target price of Rs 345 in its research report dated August 26, 2020.

August 26, 2020 / 09:37 PM IST
 
 
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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.



Outlook


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.


For all recommendations report, click here


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: Aug 26, 2020 09:37 pm

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