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Buy LIC Housing Finance; target of Rs 345: Sharekhan

Sharekhan is bullish on LIC Housing Finance has recommended buy rating on the stock with a target price of Rs 345 in its research report dated August 25, 2020.

August 26, 2020 / 03:23 PM IST
 
 
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Sharekhan's research repor on LIC Housing Finance


LIC Housing Finance Limited (LICHFL) reported steady results with operating performance coming largely in line with expectations (lower provisions resulted in better-than-expected profit), but asset-quality performance was not bright. Moratorium book held fast at 25% of total book (was 25% in Q4FY2021); with individual home loans comprising ~16% and rest being developer and LRD/LAP segment. LICHF has strengths in borrowing profile and has been able to bring down its cost of funds, helped by its strong parent profile; and we believe conservative LTVs and inexpensive valuations make risk-return favourable. We introduce FY2023E estimates and accordingly roll forward the target multiples.



Outlook


We upgrade the rating to Buy with a revised price target of Rs. 345.


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 03:23 pm

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